Exhibit d 

**Province of Saskatchewan**

**Current Description**

**December 2009**

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**[MAP]**

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**TABLE OF CONTENTS**

|                                                                                      |   |   | Page   |
|-------------------------------------------------------------------------------------------|--------|--------|--------|
| Province of Saskatchewan                                                                  |   |   |   | 1 |   |
| Overview of the Economy                                                                   |   |   |   | 3 |   |
| Finances of the Government                                                                |   |   |   | 17 |   |
| General Revenue Fund Supplementary Financial Information                                  |   |   |   | 33 |   |
| Detail of General Revenue Fund Debt                                                       |   |   |   | 53 |   |
| Crown Corporations                                                                        |   |   |   | 57 |   |
| Government of Saskatchewan Summary Financial Statements (Volume 1 of the Public Accounts) |   |   |   | Exhibit E |   |
| Sources of Information                                                                    |   |   |   | 66 |   |

        In this document, unless otherwise specified or the context otherwise requires, all dollar amounts are expressed in Canadian dollars. On November 17, 2009, the noon nominal rate for Canadian dollars ($), as reported by the Bank of Canada, was $1.0592 = 1.00 United States dollar (U.S. $). 

        Tonnes as used in this document refers to metric tons. One tonne is equivalent to 1.102311 short tons. 

        In this document, the financial transactions of the general fund of the Government are recorded under the General Revenue Fund. (Refer to page 17 for further information.) 

        The Government uses accrual accounting. The accrual accounting method recognizes financial transactions at the time they occur, regardless of whether any cash is received or paid. This method of accounting provides a complete picture of the total financial obligations resulting from decisions made during the year. The General Revenue Fund follows the accrual method except for defined        benefit pension plan costs. During 2008-09, the Government made a change in accounting policy to comply with the recommendations of the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants for long-term debt. On the Statement of Financial Position, loans to Crown corporations and public debt (gross debt net of sinking funds) are now presented net of government business enterprise specific debt. Additionally, reimbursements of interest from Crown corporation        general debt are no longer netted against debt servicing costs on the Statement of Operations. Prior to this change in accounting policy, public debt was presented on a gross basis on the Statement of Financial Position, and all reimbursements of interest from Crown corporations’ debt were netted against debt servicing costs. The 2007-08 amounts have been restated for this change in accounting policy. 

        During 2008-09, the Government determined that agricultural land held for resale, previously presented as a financial asset, is more appropriately classified as tangible capital assets because this land is not expected to be sold within the next year. This change has been applied retroactively with restatement of the 2007-08 amounts. 

        During 2008-09, the Government reclassified certain revenue categories, with restatement of 2007-08 amounts: 

| • | Corporation capital tax has been split into two components. Resource surcharge has been moved to non-renewable resources and the remaining component of corporation capital tax has been included with other taxes; |
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| • | Liquor consumption tax has moved from sales tax to other taxes and sales tax has been renamed provincial sales tax; and |
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| • | Crown land sales previously reported in oil revenues has been broken out. |
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        This document contains forward-looking statements which may be identified by their use of words like “plans,” “expected,” “will,” “project,” “estimated,” “forecast” or other words of similar meaning. All statements that address expectations or projections about the future are forward-looking statements.        Forward-looking statements are based on certain assumptions and expectations of future events. It cannot be guaranteed that these assumptions and expectations are accurate or will be realized. 

**The Canadian Dollar**

        Canada maintains a floating exchange rate for the Canadian dollar to permit the rate to be determined by market forces without intervention except as required to maintain orderly conditions. 

        Recent high and low exchange rates for the Canadian dollar in terms of United States cents are as follows: 

|   | 2004  | 2005  | 2006  | 2007   | 2008   | 2009*                   |
|--------|-------|-------|-------|--------|--------|-------------------------|
| High   | 84.93 | 86.90 | 90.99 | 109.05 | 102.89 | 97.16    |
| Low    | 71.59 | 78.72 | 85.28 | 84.37  | 77.11  | 76.92    |

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Source: Bank of Canada – noon rate.            * First ten months only. 

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***PROVINCE OF SASKATCHEWAN***

***Summary Economic and Financial Statistics***

        The following information is qualified in its entirety by the more detailed information contained in this document. See also “General Revenue Fund Supplementary Financial Information — Government of the Province of Saskatchewan, General Revenue Fund Statement of Financial Position” commencing on page 34 for a discussion of the Provincial        Auditor’s report accompanying the General Revenue Fund’s financial statements as at March 31, 2009, and for the year then ended. 

|                              |   |   | Calendar Year Ended December 31 | Compound                Annual |
|-----------------------------------|--------|--------|---------------------------------|--------------------------------|
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| Economy                           |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Domestic Product at Current |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Market Prices   |   |   | $                               | 40,281                         |   | $ | 43,797 |   | $ | 46,135 |   | $ | 51,228 |   | $ | 64,316 |   |   | 12.4 | % |
| Farm Cash Receipts                |   |   | $                               | 5,892                          |   | $ | 6,210 |   | $ | 6,627 |   | $ | 7,730 |   | $ | 9,433 |   |   | 12.5 |   |
| Mineral Sales                     |   |   | $                               | 10,400                         |   | $ | 12,456 |   | $ | 12,750 |   | $ | 14,320 |   | $ | 23,647 |   |   | 22.8 |   |
| Manufacturing Shipments           |   |   | $                               | 9,141                          |   | $ | 9,614 |   | $ | 9,865 |   | $ | 10,305 |   | $ | 12,248 |   |   | 7.6 |   |
| Exports                           |   |   | $                               | 26,854                         |   | $ | 30,354 |   | $ | 31,795 |   | $ | 35,352 |   | $ | 46,619 |   |   | 14.8 |   |
| Personal Income                   |   |   | $                               | 27,251                         |   | $ | 27,830 |   | $ | 29,336 |   | $ | 32,003 |   | $ | 35,963 |   |   | 7.2 |   |
| Population at July 1 (Thousands)  |   |   |                            | 997                            |   |   | 994 |   |   | 992 |   |   | 1,000 |   |   | 1,014 |   |   | 0.4 |   |
| Unemployment Rate                 |   |   |                            | 5.4%                           |   |   | 5.1% |   |   | 4.7% |   |   | 4.2% |   |   | 4.1% |   |   | n.a. |   |
| Change in Consumer Price Index 1  |   |   |                            | 2.2%                           |   |   | 2.2% |   |   | 2.0% |   |   | 2.9% |   |   | 3.2% |   |   | n.a. |   |
| 1 2002 = 100                      |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| n.a. = not applicable             |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                |   |   | Fiscal Year Ended March 31 |   |
|---------------------------------------------------------------------|--------|--------|----------------------------|--------|
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| **Government Finances - General Revenue Fund**                      |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Budgetary surplus (deficit) 1                                       |   |   | $                          | 383    |   | $ | 400 |   | $ | 293 |   | $ | 641 |   | $ | 2,389 |   | $ | 425 |   |
| Add (deduct) non-cash items                                         |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization of foreign exchange gains and losses |   |   |                       | 2      |   |   | 2 |   |   | 3 |   |   | 2 |   |   | 5 |   |   | 3 |   |
|    Amortization of Capital Assets                    |   |   |                       | 104    |   |   | 135 |   |   | 152 |   |   | 148 |   |   | 167 |   |   | 159 |   |
|    Loss on loans and investments                     |   |   |                       | 2      |   |   | 2 |   |   | 1 |   |   | 9 |   |   | 1 |   |   | 0 |   |
|    Net change in non-cash operating activities       |   |   |                       | 231    |   |   | 6 |   |   | (17 | ) |   | 228 |   |   | (115 | ) |   | (216 | ) |
|    Earnings retained in sinking funds                |   |   |                       | (43    | ) |   | (63 | ) |   | (46 | ) |   | (46 | ) |   | (79 | ) |   | (99 | ) |
|    Adjustment to accumulated deficit                 |   |   |                       | (6     | ) |   | 11 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Capital Activities                                                  |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash (used for) Acquisition of capital assets     |   |   |                       | (150   | ) |   | (218 | ) |   | (248 | ) |   | (278 | ) |   | (342 | ) |   | (466 | ) |
| Investing Activities                                                |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash provided by (used for) investing activities  |   |   |                       | (167   | ) |   | (102 | ) |   | (29 | ) |   | (283 | ) |   | (1,758 | ) |   | (53 | ) |
| Cash Provided (Required)                                            |   |   | $                          | 356    |   | $ | 173 |   | $ | 109 |   | $ | 421 |   | $ | 268 |   | $ | (247 | ) |
|                                                                |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 1 | For information concerning the adverse effect on the reported budgetary surplus (deficit) of certain adjustments that are required in the opinion of the Provincial Auditor, see Notes 1-9 to the Government of the Province of Saskatchewan, General Revenue Fund Statement of Financial Position for the five years ended March 31, 2009, under “General Revenue Fund Supplementary Financial Information,”                commencing on page 34. |
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|                                            |   |   | Fiscal Year Ended March 31 |
|-------------------------------------------------|--------|--------|----------------------------|
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| **Debt - General Revenue Fund**                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Gross Debt                    |   |   | $                          | 12,073 |   | $ | 11,933 |   | $ | 12,057 |   | $ | 11,578 |   | $ | 11,066 |   |
|    Less: Equity in Sinking Funds |   |   |                       | (944 | ) |   | (1,105 | ) |   | (1,255 | ) |   | (1,359 | ) |   | (3,364 | ) |
|    Guaranteed Debt               |   |   |                       | 56 |   |   | 46 |   |   | 34 |   |   | 25 |   |   | 20 |   |
| **Total General Revenue Fund Debt**             |   |   | $                          | 11,185 |   | $ | 10,874 |   | $ | 10,836 |   | $ | 10,244 |   | $ | 7,722 |   |

        In this document statistics for the economy of the Province are set forth on a calendar year basis at current market prices, except as otherwise indicated. Economic statistics for recent years frequently are preliminary estimates, which are subject to adjustment. Financial statistics and information for the Government’s General Revenue Fund are set        forth on a fiscal year basis of April 1 to March 31 of the following year, unless otherwise noted. Financial statistics and information for provincial Crown corporations are set forth on a fiscal year basis of January 1 to December 31 of the same year, unless otherwise noted. In this document, compound annual growth rates assume the first year as the base and are computed by distributing the aggregate amounts of growth during the period. 

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**PROVINCE OF SASKATCHEWAN**

**Introduction**

        The Province of Saskatchewan (Saskatchewan or the Province) was established as a province of Canada in 1905. Saskatchewan is centrally located in Western Canada and is bordered by the provinces of Manitoba to the east and Alberta to the west. The Province shares its 650 kilometre southern border with the American states of North Dakota and Montana and its 450 kilometre northern border        with the Northwest Territories of Canada. With a 1,250 kilometre distance from north to south, Saskatchewan covers an area of 652,330 square kilometres. 

        The sparsely populated northern third of the Province is part of Canada’s Precambrian Shield and consists of forests, rivers and thousands of fresh water lakes. A sizeable commercial forest region is located across the entire central part of Saskatchewan. The southern half of the Province is part of the great continental plain of North America, consisting of a mixed agricultural        and parkland area merging southward into open plains, a grain-growing region where the majority of the Province’s population resides. About one-half of all of Canada’s cultivated farm land is located in Saskatchewan. 

        The population of Saskatchewan was approximately 1,030,129 on July 1, 2009, compared with approximately 1,013,620 on July 1, 2008 and 1,017,332 on July 1, 1998. The Province’s two largest urban areas are the cities of Regina, the capital of Saskatchewan, with a population of approximately 206,716 on July 1, 2008, and Saskatoon, with a population of        approximately 250,434 as of the same date. 

        The climate of Saskatchewan is generally dry with temperatures varying markedly between very distinct seasons. The following table sets forth statistics on Saskatchewan’s population, area and climate. 

**Saskatchewan Statistics**

| Population                                                                           |                             | Area                                                   |                      |                      |
|--------------------------------------------------------------------------------------|----------------------------------|--------------------------------------------------------|---------------------------|---------------------------|
|                                                                                 | 1,030,129 (July 1, 2009)         |                                                   | *Land:*                   |                      |
|                                                                                 |                             |                                                   |                      |                      | • | 570,700 square kilometres |   |
| **Major Urban Centres**                                                              |                             |                                                   | (220,350 square miles)    |                      |
|                                                                                 | Regina                           |                                                   |                      | *Fresh Water:*            |   |
|                                                                                 |                             | Capital of Saskatchewan                                |                      | •                    | 81,630 square kilometres |   |
|                                                                                 | •                           | 206,716 (July 1, 2008)*                                |                      |                      | (31,520 square miles) |   |
|                                                                                 | Saskatoon                        |                                                   |                      | *Total:*                  |   |
|                                                                                 | •                           | Centre for Saskatchewan's                              |                      | •                    | 652,330 square kilometres |   |
|                                                                                 |                             | resource-based and advanced                            |                      |                      | (251,870 square miles) |   |
|                                                                                 |                             | technology industries                                  |                      | *Farm Land:*              |   |
|                                                                                 | •                           | 250,434 (July 1, 2008)*                                |                      | •                    | 268,655 square kilometres |   |
|                                                                                 |                             |                                                   |                      |                      |   | (103,730 square miles) |   |
| **Population Density**                                                               |                             | *Cultivated Farm Land:*                                |                      |
|                                                                                 | 1 person per 0.66 square         |                                                   | •                    | 202,470 square kilometres |   |
|                                                                                 | kilomtere (0.25 per square mile) |                                                   |                      | (78,170 square miles)     |   |
|                                                                                 |                             |                                                   |                      |                      | *Commercial Forests:* |   |
| **Mean Temperatures Range (Regina)**                                                 |                             | •                                                 | 126,300 square kilometres |                      |
|                                                                                 | January                          | -11  to -22 degrees Celsius                       |                      |                      | (48,760 square miles) |   |
|                                                                                 | July                             |   26    to 12 degrees Celsius |                      |                      |   |   |
|                                                                                 |                             |                                                   |                      |                      |   |   |   |
| **Mean Precipation (Regina)**                                                        |                             |                                                   |                      |                      |
|                                                                                 | January                          |    15 millimetres                            |                      |                      |   |   |
|                                                                                 | July                             |    59 millimteres                            |                      |                      |   |   |
|                                                                                 | Year                             |  364 millimetres                                  |                      |                      |   |   |
|                                                                                 |                             |                                                   |                      |                      |   |   |   |
| * Post-census adjusted data for 2009 for Regina and Saskatoon are not yet available. |
| Sources: Saskatchewan Bureau of Statistics, Statistics Canada.                       |                             |                                                   |                      |
|                                                                                 |                             |                                                   |                      |                      |   |   |   |

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**Constitutional Framework of Canada**

        Canada consists of a federation of ten provinces with a constitutional division of powers between the federal and provincial governments. Canada was established by the *Constitution Act, 1867*, an Act of the Parliament of the United Kingdom, and by later enactments including the *Constitution Act, 1982*, which transferred jurisdiction over the Constitution of Canada (the        Constitution) from the United Kingdom to Canada. 

        Various constitutional issues have been under discussion in Canada for a number of years. On August 20, 1998, in response to a reference from the Federal government, the Supreme Court of Canada ruled that under the Constitution of Canada and international law, Quebec may not secede unilaterally from Canada, but that if the people of Quebec voted to secede by a clear majority vote on a        clear question, the other provinces and the Federal Government would be obliged to enter negotiations with Quebec with respect to secession, such negotiations to be guided by constitutional principles, including federalism, democracy, constitutionalism and the rule of law, and the protection of minorities. 

        Under the Constitution, each provincial Legislature has exclusive authority to borrow money on the sole credit of that province and the authority to raise revenue for provincial purposes through direct taxation within its territorial limits. Legislatures can also raise revenue through taxation in respect of non-renewable natural resources, forestry resources and sites and facilities        for electricity production and generation. Each province owns minerals and other resources on its provincial Crown lands and may own sub-surface resources on its other lands. Each province has the right to levy royalties on all lands and minerals which it owns. Each province has the legislative authority to regulate the exploration for and development, conservation and management of non-renewable natural resources, forestry resources and electricity generation. Each province also has        legislative authority in the areas of education, health, social services, property and civil rights, natural resources, municipal institutions and generally all matters of a purely local or private nature. 

        The Parliament of Canada is empowered to borrow money and to raise revenue by any mode or system of taxation. Parliament has legislative authority over, among other things, the federal public debt and federal property, the regulation of trade and commerce, currency and coinage, banks and banking, bankruptcy and insolvency, navigation and shipping, foreign affairs, defence, postal        service and unemployment insurance. It also has authority over matters not assigned to the provincial legislatures. 

**Provincial Government**

        The executive power in the Province of Saskatchewan is vested in the Lieutenant Governor acting upon the advice of the Executive Council, which is responsible to the Legislative Assembly. The Lieutenant Governor is appointed by the Governor General of Canada in Council and the Governor General in turn is appointed by a commission under the Great Seal of Canada. The Executive Council,        which includes the Premier and the Ministers of Departments of the Provincial Government, is appointed by the Lieutenant Governor on the nomination of the leader of the political party which forms the Government. Members of the Executive Council hold seats in the Legislative Assembly. 

        Saskatchewan’s Legislative Assembly has 58 seats and is elected for a term of five years, subject to earlier dissolution by the Lieutenant Governor acting in accordance with constitutional principles. The Legislative Assembly is usually dissolved by the Lieutenant Governor on the recommendation of the Premier. The most recent Provincial election was held on        November 7, 2007, and resulted in a majority for the Saskatchewan Party as the Government of Saskatchewan. The representation in the Legislative Assembly at November 17, 2009 was as follows: Saskatchewan Party, 38 seats; and, New Democratic Party, 20 seats. 

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**OVERVIEW OF THE ECONOMY**

**Introduction**

        Saskatchewan has a modern, open and diversified economy. Approximately two-thirds of the total value of all goods and services produced in the Province are exported. Major exports include grains, oilseeds, crude oil, potash, natural gas, uranium and manufactured goods. While many of the goods and service producing industries are directly or indirectly related to agriculture and natural        resources, the Provincial economy continues to diversify into information age activities such as high technology, bio-technology and financial and other services. The Province’s abundance of renewable and non-renewable resources has made it the largest producer of wheat, second largest producer of crude oil and third largest natural gas producer in Canada. Saskatchewan is also one of the world’s leading suppliers of potash and uranium. 

        Saskatchewan’s economy grew at an annual real rate of 3.9 percent in 2008 largely due to strong personal consumption, business investments and a record harvest. Canada’s real Gross Domestic Product (GDP) increased by 0.5 per cent in the same year. Due in large part to strong commodity prices, Saskatchewan’s nominal GDP grew by 25.5 per cent last        year. 

        Mining is the largest sector among Saskatchewan’s goods-producing industries. The dominant mineral products of the Province include crude oil, potash, natural gas and uranium. The number of oil wells drilled increased by 23.1 per cent and the value of oil sales increased by 59.0 per cent in 2008 because of stronger oil prices. The value of natural gas sales increased by 13.9 per        cent as a result of higher natural gas prices in 2008 while the number of gas wells drilled rose by 5.8 per cent in 2008. Potash sales rose by 144.3 per cent in 2008 primarily reflecting strong sales and high prices. 

        Manufacturing is the second largest sector of Saskatchewan’s goods-producing industries. In 2008, Saskatchewan’s manufacturing shipments increased by 18.9 per cent. 

        Agriculture is the third largest sector among Saskatchewan’s goods-producing industries. Saskatchewan farmers harvested 29.8 million tonnes of the major grains and oilseeds in 2008, about 26.3 per cent higher than the harvest in 2007. 

        Saskatchewan farm cash receipts amounted to $9.4 billion in 2008, up 22.0 per cent from 2007. Realized net farm income, which is the income left with farmers after deducting operating expenses and depreciation costs from farm cash receipts, amounted to $1.6 billion reflecting higher crop receipts. 

        Retail sales increased by 10.6 per cent in 2008 while wholesale trade increased 40.9 per cent in the same year. New vehicle sales went up by 8.6 per cent in 2008. 

        Saskatchewan’s employment level increased by 2.2 per cent or 11,000 jobs in 2008. In Canada, employment increased by 1.5 per cent or 259,500 jobs in the same year. 

        Saskatchewan’s unemployment rate averaged 4.1 per cent in 2008. The national unemployment rate averaged 6.1 per cent in the same year. 

        The inflation rate of the Province, as measured by the rate of increase in the Consumer Price Index, was 3.2 per cent in 2008 compared to Canada’s inflation rate of 2.4 per cent. 

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        The following table sets forth a summary of economic indicators for Saskatchewan and for Canada for the five years ended December 31, 2008. 

| Summary of Economic Indicators                                                                 |
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|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Gross Domestic Product - Saskatchewan**                                                      |
| Current Market Prices (Millions)                                                               |   |   | $ | 40,281 |   | $ | 43,797 |   | $ | 46,135 |   | $ | 51,228 |   | $ | 64,316 |   |   | 12.4 | % |
|    Annual Rate of Change                                                        |   |   |   | 9.4 % |   |   | 8.7 % |   |   | 5.3 % |   |   | 11.0 % |   |   | 25.5 % |   |   | n.a. |   |
|    Per Capita                                                                   |   |   | $ | 40,384 |   | $ | 44,080 |   | $ | 46,501 |   | $ | 51,221 |   | $ | 63,452 |   |   | 12.0 | % |
| Chained 2002 Dollars (Millions)                                                                |   |   | $ | 38,013 |   | $ | 39,500 |   | $ | 39,386 |   | $ | 40,098 |   | $ | 41,646 |   |   | 2.3 | % |
|    Annual Rate of Change                                                        |   |   |   | 4.8 % |   |   | 3.9 % |   |   | (0.3)% |   |   | 1.8 % |   |   | 3.9 % |   |   | n.a. |   |
|    Per Capita                                                                   |   |   | $ | 38,110 |   | $ | 39,755 |   | $ | 39,699 |   | $ | 40,092 |   | $ | 41,086 |   |   | 1.9 | % |
| **Gross Domestic Product - Canada**                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Market Prices (Millions)                                                               |   |   | $ | 1,290,906 |   | $ | 1,372,626 |   | $ | 1,450,490 |   | $ | 1,535,646 |   | $ | 1,602,474 |   |   | 5.6 | % |
|    Annual Rate of Change                                                        |   |   |   | 6.4 % |   |   | 6.3 % |   |   | 5.7 % |   |   | 5.9 % |   |   | 4.4 % |   |   | n.a. |   |
|    Per Capita                                                                   |   |   | $ | 40,416 |   | $ | 42,568 |   | $ | 44,526 |   | $ | 46,631 |   | $ | 48,083 |   |   | 4.4 | % |
| Chained 2002 Dollars (Millions)                                                                |   |   | $ | 1,211,239 |   | $ | 1,246,064 |   | $ | 1,284,819 |   | $ | 1,319,681 |   | $ | 1,325,718 |   |   | 2.3 | % |
|    Annual Rate of Change                                                        |   |   |   | 3.1 % |   |   | 2.9 % |   |   | 3.1 % |   |   | 2.7 % |   |   | 0.5 % |   |   | n.a. |   |
|    Per Capita                                                                   |   |   | $ | 37,922 |   | $ | 38,643 |   | $ | 39,441 |   | $ | 40,073 |   | $ | 39,779 |   |   | 1.2 | % |
| **Consumer Price Index 1**                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (Annual Percentage Change)                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Saskatchewan                                               |   |   |   | 2.2 % |   |   | 2.2 % |   |   | 2.0 % |   |   | 2.9 % |   |   | 3.2 % |   |   | n.a. |   |
|       Canada                                                     |   |   |   | 1.8 % |   |   | 2.2 % |   |   | 2.0 % |   |   | 2.1 % |   |   | 2.4 % |   |   | n.a. |   |
| **Population** (July 1)(Thousands)                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Saskatchewan                                               |   |   |   | 997 |   |   | 994 |   |   | 992 |   |   | 1,000 |   |   | 1,014 |   |   | 0.4 | % |
|       Canada                                                     |   |   |   | 31,941 |   |   | 32,245 |   |   | 32,576 |   |   | 32,932 |   |   | 33,327 |   |   | 1.1 | % |
| **Unemployment Rate**                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Saskatchewan                                               |   |   |   | 5.4 % |   |   | 5.1 % |   |   | 4.7 % |   |   | 4.2 % |   |   | 4.1 % |   |   | n.a. |   |
|       Canada                                                     |   |   |   | 7.2 % |   |   | 6.8 % |   |   | 6.3 % |   |   | 6.0 % |   |   | 6.1 % |   |   | n.a. |   |
| 1 2002 = 100n.a. = not applicableSources: Saskatchewan Bureau of Statistics, Statistics Canada |

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**Gross Domestic Product**

        Saskatchewan’s real GDP measured in chained 2002 dollars increased at a compound average annual rate of 2.3 per cent in the period from 2004 to 2008. Measured in current market prices, Saskatchewan’s GDP grew at a compound average annual rate of 12.4 per cent in the same period. In 2008, Saskatchewan’s real GDP increased by 3.9 per cent. 

        The following table sets forth the composition of the Province’s GDP both at current market prices and in chained 2002 dollars for the five years ended December 31, 2008. 

| Gross Domestic Product                                                                                          |
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| **Gross Domestic Product**                                                                                      |
|    **Current Market Prices**                                                                     |
|    Personal Expenditure on Goods                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and Services                                                                |   |   | $ | 21,006 |   | $ | 21,976 |   | $ | 23,222 |   | $ | 25,183 |   | $ | 27,346 |   |   | 6.8 | % |
|    Government Expenditure on Goods                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and Services                                                                |   |   |   | 8,253 |   |   | 8,698 |   |   | 9,358 |   |   | 9,868 |   |   | 10,550 |   |   | 6.3 | % |
|    Gross Fixed Capital Formation                                                                 |   |   |   | 7,619 |   |   | 9,069 |   |   | 10,511 |   |   | 11,030 |   |   | 13,162 |   |   | 14.6 | % |
|    Value of Physical Change in Inventories:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Non-Farm                                                                    |   |   |   | 368 |   |   | 275 |   |   | 806 |   |   | 849 |   |   | (203 | ) |   | n.a. |   |
|       Farm Inventories and Grain in                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Commercial Channels                                       |   |   |   | 733 |   |   | 600 |   |   | (722 | ) |   | (577 | ) |   | 1,282 |   |   | n.a. |   |
|    Exports of Goods and Services                                                                 |   |   |   | 26,854 |   |   | 30,354 |   |   | 31,795 |   |   | 35,352 |   |   | 46,619 |   |   | 14.8 | % |
|       Less: Imports of Goods and Services                                         |   |   |   | 25,058 |   |   | 27,411 |   |   | 29,220 |   |   | 30,872 |   |   | 34,501 |   |   | 8.3 | % |
|    Residual Error and Adjustment                                                                 |   |   |   | 506 |   |   | 236 |   |   | 385 |   |   | 395 |   |   | 61 |   |   | n.a. |   |
| **Total**                                                                                                       |   |   | $ | 40,281 |   | $ | 43,797 |   | $ | 46,135 |   | $ | 51,228 |   | $ | 64,316 |   |   | 12.4 | % |
| **Gross Domestic Product**                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Chained 2002 Dollars**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Personal Expenditure on Goods                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and Services                                                                |   |   | $ | 20,230 |   | $ | 20,813 |   | $ | 21,636 |   | $ | 23,011 |   | $ | 24,280 |   |   | 4.7 | % |
|    Government Expenditure on Goods                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and Services                                                                |   |   |   | 7,813 |   |   | 8,002 |   |   | 8,330 |   |   | 8,522 |   |   | 8,784 |   |   | 3.0 | % |
|    Gross Fixed Capital Formation                                                                 |   |   |   | 7,643 |   |   | 8,917 |   |   | 10,098 |   |   | 9,968 |   |   | 11,212 |   |   | 10.1 | % |
|   Value of Physical Change in Inventories:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Non-Farm                                                                    |   |   |   | 451 |   |   | 364 |   |   | 755 |   |   | 794 |   |   | (237 | ) |   | n.a. |   |
|       Farm Inventories and Grain in                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Commercial Channels                                       |   |   |   | 865 |   |   | 1,382 |   |   | (646 | ) |   | (271 | ) |   | 1,561 |   |   | n.a. |   |
|    Exports of Goods and Services                                                                 |   |   |   | 25,964 |   |   | 26,930 |   |   | 26,959 |   |   | 27,430 |   |   | 27,559 |   |   | 1.5 | % |
|       Less: Imports of Goods and Services                                         |   |   |   | 25,320 |   |   | 26,819 |   |   | 28,516 |   |   | 30,093 |   |   | 31,620 |   |   | 5.7 | % |
|    Residual Error and Adjustment                                                                 |   |   |   | 483 |   |   | 214 |   |   | 335 |   |   | 314 |   |   | 36 |   |   | n.a. |   |
| **Total**                                                                                                       |   |   | $ | 38,013 |   | $ | 39,500 |   | $ | 39,386 |   | $ | 40,098 |   | $ | 41,646 |   |   | 2.3 | % |
| n.a. = not applicable                                                                                           |
| Note:      Components may not add due to use of chained fisher price methodology. |
| Source:  Saskatchewan Bureau of Statistics                                                            |

5 

----

----

**Capital Expenditure**

        Gross fixed capital formation increased at a compound average annual rate of 14.6 per cent over the period from 2004 to 2008. Investment in transportation and warehousing increased by 43.0 per cent; manufacturing by 36.3 per cent; construction, 19.5 per cent; and information and cultural services, 17.0 per cent. 

        The following table sets forth information on Saskatchewan’s gross fixed capital formation for the five years ended December 31, 2008. 

| Gross Fixed Capital Formation                                                             |
|-------------------------------------------------------------------------------------------|
||
||
||
|                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agriculture 1                                                                             |   |   | $ | 680 |   | $ | 733 |   | $ | 556 |   | $ | 568 |   | $ | 536 |   |   | (5.8 | )% |
| Mining 2                                                                                  |   |   |   | 2,355 |   |   | 3,183 |   |   | 4,037 |   |   | 3,533 |   |   | 3,695 |   |   | 11.9 |   |
| Construction                                                                              |   |   |   | 71 |   |   | 87 |   |   | 97 |   |   | 113 |   |   | 145 |   |   | 19.5 |   |
| Manufacturing                                                                             |   |   |   | 253 |   |   | 297 |   |   | 435 |   |   | 448 |   |   | 874 |   |   | 36.3 |   |
| Transportation & Warehousing                                                          |   |   |   | 358 |   |   | 375 |   |   | 451 |   |   | 698 |   |   | 1,497 |   |   | 43.0 |   |
| Information and Cultural Services                                                         |   |   |   | 209 |   |   | 247 |   |   | 387 |   |   | 324 |   |   | 391 |   |   | 17.0 |   |
| Utilities                                                                                 |   |   |   | 376 |   |   | 634 |   |   | 432 |   |   | 495 |   |   | 687 |   |   | 16.3 |   |
| Retail and Wholesale Trade                                                                |   |   |   | 334 |   |   | 353 |   |   | 387 |   |   | 369 |   |   | 378 |   |   | 3.1 |   |
| Finance and Insurance 3                                                                   |   |   |   | 1,958 |   |   | 2,037 |   |   | 2,325 |   |   | 2,950 |   |   | 3,464 |   |   | 15.3 |   |
| Commercial Services                                                                       |   |   |   | 184 |   |   | 187 |   |   | 226 |   |   | 253 |   |   | 243 |   |   | 7.2 |   |
| Institutions                                                                              |   |   |   | 308 |   |   | 311 |   |   | 458 |   |   | 421 |   |   | 309 |   |   | 0.1 |   |
| Public Administration                                                                     |   |   |   | 532 |   |   | 626 |   |   | 719 |   |   | 858 |   |   | 943 |   |   | 15.4 |   |
| **Total**                                                                                 |   |   | $ | 7,618 |   | $ | 9,070 |   | $ | 10,510 |   | $ | 11,030 |   | $ | 13,162 |   |   | 14.6 |  % |
| 1  Includes forestry, fishing, trapping and hunting.                            |
| 2  Includes oil and natural gas extraction, potash, uranium and other minerals. |
| 3  Includes real estate and other services not shown above.                     |
| Components will not add to total.                                                         |
| Source:  Saskatchewan Bureau of Statistics                                      |

6 

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----

**Exports and Imports**

        Crude oil, manufactured goods, grains and potash are Saskatchewan’s principal exports, accounting for 28.6 per cent, 12.8 per cent, 12.9 per cent and 16.0 per cent, respectively, of total exports in 2008. For the five years ended December 31, 2008, total exports increased by an average of 14.8 per cent per year while imports increased by an average of        8.3 per cent per year. 

        The following table sets forth details of Saskatchewan’s exports and imports at current market prices for the five years ended December 31, 2008. 

| Trade with the Rest of Canada and Abroad             |
|------------------------------------------------------|
||
||
||
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Exports**                                          |
|    Grain                              |   |   | $ | 2,903 |   | $ | 2,640 |   | $ | 3,479 |   | $ | 5,141 |   | $ | 6,024 |   |   | 20.0 | % |
|    Crude Oil                          |   |   |   | 5,718 |   |   | 7,115 |   |   | 8,132 |   |   | 8,360 |   |   | 13,348 |   |   | 23.6 |   |
|    Potash                             |   |   |   | 2,167 |   |   | 2,697 |   |   | 2,209 |   |   | 3,056 |   |   | 7,465 |   |   | 36.2 |   |
|    Manufactured Goods                 |   |   |   | 4,147 |   |   | 4,722 |   |   | 4,984 |   |   | 5,102 |   |   | 5,969 |   |   | 9.5 |   |
|    Other                              |   |   |   | 11,919 |   |   | 13,180 |   |   | 12,991 |   |   | 13,693 |   |   | 13,813 |   |   | 3.8 |   |
| **Total Exports**                                    |   |   | $ | 26,854 |   | $ | 30,354 |   | $ | 31,795 |   | $ | 35,352 |   | $ | 46,619 |   |   | 14.8 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Imports**                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crude Oil                          |   |   | $ | 1,042 |   | $ | 1,272 |   | $ | 1,334 |   | $ | 1,161 |   | $ | 1,900 |   |   | 16.2 | % |
|    Manufactured Goods                 |   |   |   | 5,832 |   |   | 6,014 |   |   | 6,204 |   |   | 6,318 |   |   | 6,949 |   |   | 4.5 |   |
|    Other                              |   |   |   | 18,184 |   |   | 20,125 |   |   | 21,682 |   |   | 23,393 |   |   | 25,652 |   |   | 9.0 |   |
| **Total Imports**                                    |   |   | $ | 25,058 |   | $ | 27,411 |   | $ | 29,220 |   | $ | 30,872 |   | $ | 34,501 |   |   | 8.3 | % |
| Source:  Saskatchewan Bureau of Statistics |

7 

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----

**Labour Force and Employment**

        Saskatchewan’s unemployment rate remained well below the national unemployment rate in 2008. The national unemployment rate stood at 6.1 per cent in 2008, while Saskatchewan’s unemployment rate was 4.1 per cent in the same year. 

        In the first ten months of 2009, Saskatchewan’s seasonally adjusted unemployment rate has averaged 4.8 per cent, compared to the national average unemployment rate of 8.2 per cent over the same period. Thus far, total employment in the Province has increased by about 9,400 compared with the same period last year. 

        The following table sets forth selected labour force statistics for Saskatchewan and Canada for the five years ended December 31, 2008. 

| Labour Force Statistics               |
|---------------------------------------|
||
||
||
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Labour Force**                      |
|    Saskatchewan        |   |   |   | 507 |   |   | 509 |   |   | 516 |   |   | 524 |   |   | 535 |   |   | 1.0 |  % |
|    Canada              |   |   |   | 17,182 |   |   | 17,343 |   |   | 17,593 |   |   | 17,946 |   |   | 18,245 |   |   | 1.4 |  % |
|                                  |
| **Employed**                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Saskatchewan        |   |   |   | 480 |   |   | 483 |   |   | 492 |   |   | 502 |   |   | 513 |   |   | 1.7 |  % |
|    Canada              |   |   |   | 15,947 |   |   | 16,170 |   |   | 16,484 |   |   | 16,866 |   |   | 17,126 |   |   | 1.8 |  % |
|                                  |
| **Unemployed**                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Saskatchewan        |   |   |   | 27 |   |   | 26 |   |   | 24 |   |   | 22 |   |   | 22 |   |   | (5.1 | )% |
|    Canada              |   |   |   | 1,235 |   |   | 1,173 |   |   | 1,108 |   |   | 1,079 |   |   | 1,119 |   |   | (2.4 | )% |
|                                  |
| **Unemployment Rate**                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Saskatchewan        |   |   |   | 5.4 | % |   | 5.1 | % |   | 4.7 | % |   | 4.2 | % |   | 4.1 | % |   | n.a. |   |
|    Canada              |   |   |   | 7.2 | % |   | 6.8 | % |   | 6.3 | % |   | 6.0 | % |   | 6.1 | % |   | n.a. |   |
|                                  |
| **Participation Rate**                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Saskatchewan        |   |   |   | 67.9 | % |   | 68.1 | % |   | 69.1 | % |   | 69.7 | % |   | 69.7 | % |   | n.a. |   |
|    Canada              |   |   |   | 67.5 | % |   | 67.2 | % |   | 67.2 | % |   | 67.6 | % |   | 67.8 | % |   | n.a. |   |
| n.a. = not applicable                 |
| Source:  Statistics Canada. |

8 

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----

        Approximately 33,000 net new jobs were created in the Province in the period from 2004 to 2008. Construction, mining and public administration were the leaders in terms of job creation during the period in review. 

        The following table sets forth selected statistics of employment by industry for the Province. 

| Employment by Industry                                               |
|----------------------------------------------------------------------|
||
||
||
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Goods-Producing Industries**                                       |
|    Agriculture                                        |   |   |   | 47 |   |   | 47 |   |   | 48 |   |   | 44 |   |   | 41 |   |   | (3.2 | )% |
|    Mining                                             |   |   |   | 19 |   |   | 19 |   |   | 22 |   |   | 22 |   |   | 25 |   |   | 7.4 |   |
|    Construction                                       |   |   |   | 24 |   |   | 26 |   |   | 30 |   |   | 32 |   |   | 37 |   |   | 11.2 |   |
|    Manufacturing                                      |   |   |   | 29 |   |   | 30 |   |   | 29 |   |   | 31 |   |   | 31 |   |   | 1.8 |   |
| **Subtotal**                                                         |   |   |   | 118 |   |   | 122 |   |   | 128 |   |   | 129 |   |   | 134 |   |   | 3.1 |   |
|                                                                 |
| **Service Industries**                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Transportation, Communication,                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Utilities and Storage            |   |   |   | 28 |   |   | 29 |   |   | 30 |   |   | 29 |   |   | 30 |   |   | 1.8 |   |
|    Wholesale and Retail Trade                         |   |   |   | 77 |   |   | 78 |   |   | 79 |   |   | 83 |   |   | 83 |   |   | 2.1 |   |
|    Finance, Insurance and Real Estate                 |   |   |   | 27 |   |   | 26 |   |   | 26 |   |   | 27 |   |   | 28 |   |   | 1.5 |   |
|    Business and Community Services                    |   |   |   | 204 |   |   | 201 |   |   | 201 |   |   | 208 |   |   | 208 |   |   | 0.5 |   |
|    Public Administration                              |   |   |   | 26 |   |   | 27 |   |   | 28 |   |   | 28 |   |   | 29 |   |   | 3.1 |   |
| **Subtotal**                                                         |   |   |   | 361 |   |   | 362 |   |   | 363 |   |   | 373 |   |   | 379 |   |   | 1.2 |   |
| **Total**                                                            |   |   |   | 480 |   |   | 483 |   |   | 492 |   |   | 502 |   |   | 513 |   |   | 1.7 |  % |
| Note:    Components may not add due to rounding. |
| Source: Saskatchewan Bureau of Statistics                       |

9

----

----

**Personal Income**

        Saskatchewan personal income increased at a compound average annual rate of 7.2 per cent over the period from 2004 to 2008. The following table sets forth personal income for Saskatchewan for the five years ended December 31, 2008. 

| Personal Income                                       |
|-------------------------------------------------------|
||
||
||
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wages, Salaries and Supplementary                     |
|    Labour Income                       |   |   | $ | 16,689 |   | $ | 17,622 |   | $ | 19,221 |   | $ | 20,712 |   | $ | 22,454 |   |   | 7.7 | % |
| Net Income Received by Farm Operators                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    from Farm Production                |   |   |   | 786 |   |   | 259 |   |   | (335 | ) |   | 15 |   |   | 1,585 |   |   | n.a. |   |
| Net Income of Non-Farm Unincorporated                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Business 1                          |   |   |   | 2,108 |   |   | 2,159 |   |   | 2,232 |   |   | 2,393 |   |   | 2,746 |   |   | 6.8 |   |
| Interest, Dividends and Miscellaneous                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Investment Income                   |   |   |   | 2,887 |   |   | 2,978 |   |   | 3,179 |   |   | 3,529 |   |   | 3,697 |   |   | 6.4 |   |
| Others                                                |   |   |   | 4,781 |   |   | 4,812 |   |   | 5,039 |   |   | 5,354 |   |   | 5,481 |   |   | 3.5 |   |
| **Total**                                             |   |   | $ | 27,251 |   | $ | 27,830 |   | $ | 29,336 |   | $ | 32,003 |   | $ | 35,963 |   |   | 7.2 |  % |
| 1  Includes rent.                           |
| n.a. = not applicable                                 |
| Source:  Saskatchewan Bureau of Statistics. |

10

----

----

**Economic Structure**

        The following table sets forth Saskatchewan’s real GDP at basic prices by industry for the five years ended December 31, 2008. 

| Gross Domestic Product at Basic Prices by Industry in Millions of Chained 2002 Dollars                                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
||
||
||
| **Goods-Producing Industries**                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Agriculture, forestry, fishing                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and hunting                                                                                                                                                                                |   |   | $ | 3,820 |   | $ | 4,224 |   | $ | 3,942 |   | $ | 3,790 |   | $ | 4,407 |   |   | 10.9 |  % |   | 3.6 |  % |
|    Mining 1                                                                                                                                                                                                     |   |   |   | 6,123 |   |   | 5,954 |   |   | 5,385 |   |   | 5,490 |   |   | 5,525 |   |   | 13.7 |  % |   | (2.5 | )% |
|    Utilities                                                                                                                                                                                                    |   |   |   | 910 |   |   | 912 |   |   | 949 |   |   | 978 |   |   | 968 |   |   | 2.4 |  % |   | 1.6 |  % |
|    Manufacturing                                                                                                                                                                                                |   |   |   | 2,650 |   |   | 2,833 |   |   | 2,836 |   |   | 2,851 |   |   | 3,010 |   |   | 7.5 |  % |   | 3.2 |  % |
|    Construction                                                                                                                                                                                                 |   |   |   | 1,705 |   |   | 1,994 |   |   | 2,225 |   |   | 2,145 |   |   | 2,481 |   |   | 6.2 |  % |   | 9.8 |  % |
| **Subtotal**                                                                                                                                                                                                                   |   |   | $ | 15,207 |   | $ | 15,916 |   | $ | 15,337 |   | $ | 15,254 |   | $ | 16,390 |   |   | 40.7 |  % |   | 1.9 |  % |
|                                                                                                                                                                                                                           |
| **Services Industries**                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Transportation and Warehousing                                                                                                                                                                               |   |   | $ | 2,169 |   | $ | 2,180 |   | $ | 2,257 |   | $ | 2,284 |   | $ | 2,258 |   |   | 5.6 |  % |   | 1.0 |  % |
|    Finance, Insurance and                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Real Estate                                                                                                                                                                                |   |   |   | 5,246 |   |   | 5,385 |   |   | 5,559 |   |   | 5,746 |   |   | 5,964 |   |   | 14.8 |  % |   | 3.3 |  % |
|    Wholesale and Retail Trade                                                                                                                                                                                   |   |   |   | 3,654 |   |   | 3,808 |   |   | 4,014 |   |   | 4,586 |   |   | 5,008 |   |   | 12.4 |  % |   | 8.2 |  % |
|    Information & Cultural Industries                                                                                                                                                                        |   |   |   | 890 |   |   | 895 |   |   | 913 |   |   | 955 |   |   | 988 |   |   | 2.5 |  % |   | 2.6 |  % |
|    Services                                                                                                                                                                                                     |   |   |   | 6,877 |   |   | 7,092 |   |   | 7,271 |   |   | 7,444 |   |   | 7,688 |   |   | 19.1 |  % |   | 2.8 |  % |
|    Public Administration                                                                                                                                                                                        |   |   |   | 1,836 |   |   | 1,852 |   |   | 1,904 |   |   | 1,921 |   |   | 1,962 |   |   | 4.9 |  % |   | 1.7 |  % |
| **Subtotal**                                                                                                                                                                                                                   |   |   | $ | 20,671 |   | $ | 21,211 |   | $ | 21,918 |   | $ | 22,938 |   | $ | 23,868 |   |   | 59.3 |  % |   | 3.7 |  % |
| **Gross Domestic Product at**                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Basic Prices**                                                                                                                                                                                             |   |   | $ | 35,879 |   | $ | 37,127 |   | $ | 37,255 |   | $ | 38,192 |   | $ | 40,258 |   |   | 100.0 |  % |   | 2.9 |  % |
| 1 Includes oil, potash, uranium, natural gas and other minerals.                                                                                                                                                               |
| Note:     Components may not add due to use of chained fisher dollar methodology. GDP at basic prices and GDP at market prices differ by the amount of "indirect taxes net of subsidies on products." |
| Source:  Statistics Canada.                                                                                                                                                                                          |

11

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----

**Agriculture**

        Based on the 2006 Census of Agriculture, Saskatchewan has 44,329 farms with an average size of 1,449 acres. With slightly less than half of the total land area of the Province utilized for farming, the Province has approximately half of the cultivated farm land in all of Canada. 

        Historically, wheat has been Saskatchewan’s largest single grain crop in terms of volume and value. Between 1999 and 2008, wheat accounted for 31.4 per cent of all crops grown in the Province and represented over half of all the wheat grown in Canada. In 2008, wheat’s share accounted for 25.6 per cent of the total Saskatchewan crop harvest. Other major grains and oilseeds        such as durum, barley and canola accounted for 46.7 per cent of total crop production in 2008. Specialty crops such as mustard, lentils and peas accounted for 27.7 per cent of the total harvest in 2008. 

**Crop Production**

|                                                                                         |   |   | Calendar Year Ended December 31 | 1999 to 2008                10 year |
|----------------------------------------------------------------------------------------------|--------|--------|---------------------------------|-------------------------------------|
||
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| Wheat                                                                                        |   |   |                            | 10.4                                |   |   | 8.7 |   |   | 7.4 |   |   | 4.5 |   |   | 7.0 |   |   | 7.8 |   |   | 8.1 |   |   | 8.4 |   |   | 6.0 |   |   | 8.0 |   |   | 7.6 |   |
| Durum                                                                                        |   |   |                            | 3.4                                 |   |   | 4.8 |   |   | 2.5 |   |   | 2.9 |   |   | 3.2 |   |   | 3.8 |   |   | 4.9 |   |   | 2.7 |   |   | 3.0 |   |   | 4.4 |   |   | 3.6 |   |
| Barley                                                                                       |   |   |                            | 4.9                                 |   |   | 5.3 |   |   | 3.7 |   |   | 2.5 |   |   | 4.4 |   |   | 4.7 |   |   | 5.0 |   |   | 3.4 |   |   | 3.9 |   |   | 4.6 |   |   | 4.2 |   |
| Canola                                                                                       |   |   |                            | 4.0                                 |   |   | 3.4 |   |   | 2.2 |   |   | 1.8 |   |   | 2.7 |   |   | 2.9 |   |   | 4.5 |   |   | 3.7 |   |   | 4.1 |   |   | 5.6 |   |   | 3.5 |   |
| Specialty Crops 1                                                                            |   |   |                            | 2.8                                 |   |   | 3.3 |   |   | 2.1 |   |   | 1.5 |   |   | 2.2 |   |   | 3.7 |   |   | 3.8 |   |   | 2.8 |   |   | 3.3 |   |   | 4.0 |   |   | 2.9 |   |
| Other 2                                                                                      |   |   |                            | 2.6                                 |   |   | 2.5 |   |   | 2.0 |   |   | 1.7 |   |   | 1.7 |   |   | 1.9 |   |   | 2.6 |   |   | 2.8 |   |   | 3.2 |   |   | 3.1 |   |   | 2.4 |   |
| **Total**                                                                                    |   |   |                            | 28.2                                |   |   | 28.0 |   |   | 19.8 |   |   | 14.9 |   |   | 21.1 |   |   | 24.7 |   |   | 28.8 |   |   | 23.8 |   |   | 23.6 |   |   | 29.8 |   |   | 24.3 |   |
|                                                                                         |
| 1     Includes mustard, sunflowers, lentils, field peas and canary seed. |
| 2     Includes oats, fall rye, spring rye, flax and mixed grain.         |
| Source:  Statistics Canada.                                                        |
| Note:    Components may not add due to rounding.                         |

        Livestock production is also important in Saskatchewan. Approximately one-quarter of the total Canadian beef cattle herd is located in the Province. Other livestock raised in Saskatchewan include hogs, sheep, lambs, poultry and dairy cattle. 

        Farm cash receipts from crop production totalled $7.0 billion in 2008, with wheat, durum and canola accounting for $4.7 billion, or 67.0 per cent, of the year’s total cash receipts from crop sales. Farm cash receipts from the sale of livestock and livestock products amounted to $1.7 billion in 2008, with cattle and calves accounting for $1.1 million, or 64.4 per        cent, of the year’s total cash receipts from livestock sales. 

        Total farm cash receipts reached $9.4 billion in 2008, up 22.0 per cent from 2007. 

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        The following table sets forth Saskatchewan’s farm cash receipts for the five years ended December 31, 2008. 

| Farm Cash Receipts                                                                   |
|--------------------------------------------------------------------------------------|
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|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Crops**                                                                            |
|    Wheat and Durum                                                    |   |   | $ | 1,294 |   | $ | 1,084 |   | $ | 1,329 |   | $ | 2,037 |   | $ | 2,738 |   |   | 20.6 |  % |
|    Canola                                                             |   |   |   | 734 |   |   | 701 |   |   | 1,117 |   |   | 1,472 |   |   | 1,997 |   |   | 28.4 |   |
|    Barley                                                             |   |   |   | 283 |   |   | 252 |   |   | 230 |   |   | 361 |   |   | 433 |   |   | 11.2 |   |
|    Other Crops 1                                                      |   |   |   | 944 |   |   | 1,055 |   |   | 957 |   |   | 1,296 |   |   | 1,901 |   |   | 19.1 |   |
| **Subtotal**                                                                         |   |   | $ | 3,255 |   | $ | 3,092 |   | $ | 3,633 |   | $ | 5,166 |   | $ | 7,070 |   |   | 21.4 |   |
|                                                                                 |
| **Livestock & Livestock Products**                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cattle & Calves                                                |   |   | $ | 827 |   | $ | 1,183 |   | $ | 1,126 |   | $ | 1,093 |   | $ | 1,112 |   |   | 7.7 |   |
|    Hogs                                                               |   |   |   | 316 |   |   | 301 |   |   | 287 |   |   | 261 |   |   | 253 |   |   | (5.4 | ) |
|    Other Livestock and Livestock Products 2                           |   | 305 |   |   | 310 |   |   | 313 |   |   | 339 |   |   | 361 |   |   | 4.3 |   |
| **Subtotal**                                                                         |   |   | $ | 1,447 |   | $ | 1,794 |   | $ | 1,727 |   | $ | 1,693 |   | $ | 1,726 |   |   | 4.5 |   |
|                                                                                 |
| **Supplementary, Deficiency, Stablization,**                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Insurance and Other Payments**                                   |   |   | $ | 1,190 |   | $ | 1,323 |   | $ | 1,267 |   | $ | 871 |   | $ | 637 |   |   | (14.4 | ) |
| **Total Farm Cash Receipts**                                                         |   |   | $ | 5,892 |   | $ | 6,210 |   | $ | 6,627 |   | $ | 7,730 |   | $ | 9,433 |   |   | 12.5 |  % |
| 1 Includes net deferments.                                                           |
| 2 Includes sheep, lambs, dairy products, poultry, eggs and other livestock products. |
| Note:    Components may not add due to rounding.                 |
| Source:  Statistics Canada.                                                |

        Total farm revenue is made up of three components: crop receipts, livestock receipts and government program payments. Crop receipts amounted to $7.0 billion in 2008, up 36.9 per cent from 2007 due to improved crop quality and higher prices. Farm cash receipts from livestock sales amounted to $1.7 billion in the same year, up 1.9 per cent from 2007. Government        payments in 2008 amounted to $637 million, down 26.9 per cent from the amount provided by both the federal and provincial governments to farmers in 2007. 

        Saskatchewan’s 2008 realized net farm income amounted to $1.6 billion, compared with $857.6 million in 2007 reflecting higher crop sales. Realized net farm income is the result of deducting farm operating expenses and depreciation cost from farm cash receipts. 

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**Mining and Petroleum/Natural Gas**

        In 2008, the total value of mineral sales amounted to $23.6 billion, an increase of 65.1 per cent from the prior year. Crude oil, natural gas and potash accounted for 94.9 per cent of the total value of mineral sales in 2008. 

        In the first seven months of 2009, the value of oil sales decreased by 46.0 per cent while the value of natural gas sales dropped by 55.2 per cent due to lower selling prices. The value of potash sales also declined by 58.4 per cent over the same period. 

        The following table sets forth Saskatchewan’s value and volume of mineral sales for the five years ended December 31, 2008. 

| Mineral Sales                                                                                 |
|-----------------------------------------------------------------------------------------------|
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|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Value of Mineral Sales**                                                                    |
|    Oil                                                                         |   |   | $ | 5,640 |   | $ | 6,682 |   | $ | 7,879 |   | $ | 8,376 |   | $ | 13,321 |   |   | 24.0 |  % |
|    Natural Gas                                                                 |   |   |   | 1,646 |   |   | 2,103 |   |   | 1,659 |   |   | 1,451 |   |   | 1,653 |   |   | 0.1 |  % |
|    Potash                                                                      |   |   |   | 2,168 |   |   | 2,697 |   |   | 2,210 |   |   | 3,056 |   |   | 7,465 |   |   | 36.2 |  % |
|    Other 1                                                                     |   |   |   | 946 |   |   | 975 |   |   | 1,002 |   |   | 1,437 |   |   | 1,208 |   |   | 6.3 |  % |
| **Total**                                                                                     |   |   | $ | 10,400 |   | $ | 12,456 |   | $ | 12,750 |   | $ | 14,320 |   | $ | 23,647 |   |   | 22.8 |  % |
|                                                                                          |
| **Volume of Mineral Sales**                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Oil (millions of barrels)                                                   |   |   |   | 155 |   |   | 153 |   |   | 156 |   |   | 156 |   |   | 160 |   |   | 0.9 |  % |
|    Natural Gas (millions of cubic metres)                                      |   |   |   | 7,283 |   |   | 7,220 |   |   | 7,098 |   |   | 6,400 |   |   | 5,869 |   |   | (5.3 | )% |
|    Potash (thousands of tonnes)                                                |   |   |   | 9,998 |   |   | 9,539 |   |   | 8,210 |   |   | 10,661 |   |   | 10,162 |   |   | 0.4 |  % |
| 1 Other includes Uranium, Gold, Sodium Sulphate, Salt, Coal, and Base Metals and Bentonite.   |
| Note:      Components may not add due to rounding.              |
| Source:  Saskatchewan Bureau of Statistics and Saskatchewan Industry and Resources. |

        ***Oil.***    Saskatchewan is the second largest crude oil producing province in Canada. Subject to change due to price fluctuations and technology improvements, remaining economically recoverable reserves in the Province are estimated to be 1.2 billion barrels of crude oil. 

        The volume of Saskatchewan oil sales increased at a compound annual rate of 0.9 per cent from 2004 to 2008 while the value of oil sales increased by 24.0 per cent in the same period. 

        Saskatchewan crude oil production is of light, medium and heavy gravity. Approximately 15 to 20 per cent of Saskatchewan’s crude is sold within the Province (primarily to the NewGrade Upgrader, Husky Upgrader and Moose Jaw Asphalt plant) while 10 to 15 per cent is sold to refineries in Eastern Canada. The major market for Saskatchewan’s oil is the upper Midwest of the        United States (approximately 65 to 75 per cent.) 

        Both the NewGrade and Husky Upgraders are designed to produce an output of light synthetic crude oil from a feedstock of blended heavy crude oil. The NewGrade Upgrader has an operating capacity of approximately 60,000 barrels per day while the Husky Upgrader has the capacity to upgrade approximately 82,000 barrels per day. 

        In addition to local companies, a large number of multinational oil and gas companies are actively involved in exploration and development in the Province. The oil industry has experienced success with deep drilling discoveries and is adopting technological improvements. For example, horizontal drilling and screw pump technology can significantly improve recovery rates and lower        operating costs for many reservoirs in Saskatchewan. The oil industry in the Province invested approximately $13.6 billion in the period from 2004 to 2008 exploring for and developing oil reserves. From 2004 to the end of 2008, 11,208 oil wells were drilled in Saskatchewan. In 2008, 2,824 oil wells were drilled in the Province. 

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        ***Natural Gas.***    The volume of Saskatchewan natural gas sales decreased at a compound average annual rate of 5.3 per cent from 2004 to 2008, while the value of natural gas sales increased by 0.1 per cent in the same period. The natural gas industry in the Province invested approximately $1.5 billion in the period from 2004 to 2008 exploring        for and developing natural gas reserves. During this period, 7,624 natural gas wells were drilled. In 2008, 1,221 gas wells were drilled in the Province. 

        ***Potash.***    Saskatchewan has ten potash mines that produce potash from massive reserves located in southern Saskatchewan. By conservative estimates, Saskatchewan could supply world demand at current levels for several hundred years. Potash production in Saskatchewan is highly mechanized and relatively low-cost because of the regularity and thickness of        deposits and the predictability of ore grades. 

        In recent years, Saskatchewan potash production has accounted for about 30 per cent of the world’s output. Approximately 40 per cent of Saskatchewan’s potash production is exported to the United States. The value of Saskatchewan potash sales in 2008 increased by 144.3 per cent to $7.5 billion. The Saskatchewan government implemented changes in 2005 to        the potash tax system to promote sales and investment by the potash industry. As a result of the tax changes and strong demand growth, the industry is expected to spend $9.4 billion by 2020 to increase potash production capacity by about 88 per cent. 

        ***Uranium.***    In 2008, Saskatchewan was the world’s largest producer of uranium and contains high grade, low cost uranium resources. Uranium was produced at three facilities (McArthur River-Key Lake, Rabbit Lake and McClean Lake) located in northern Saskatchewan. 

        Current and planned expansion of the Province’s uranium supply capability includes the McClean Lake, McArthur River and Rabbit Lake mines and the Midwest and Cigar Lake projects. 

        McClean Lake, the Province’s newest facility, commenced production in 1999. In 2008, McClean Lake completed mining at the Sue B pit and continued production of stockpiled ore from the Sue E and Sue B deposits in 2009. Mining authorization for the McClean North deposits has been granted and the Caribou deposit was deferred due to economic conditions but continues in the regulatory        review process. Future ore supply sources are being evaluated. 

        The McArthur River project began production in 1999 with the ore being processed at the Key Lake mill. In 2008, scheduled mill maintenance decreased production which is forecast to return to full capacity in 2009. An application to expand production capacity at Key Lake and McArthur River is under regulatory review. 

        The Rabbit Lake mine returned to production in 2002 following a two-year shutdown. With the identification of additional reserves, production will gradually decrease from current levels by 2014 as the mill converts to the processing of Cigar Lake ore. 

        Of the future mine expansion projects, Cigar Lake and Midwest received initial environmental assessment approval in March 1998 but did not proceed due to market conditions. Cigar Lake was granted a full construction license to proceed in December 2004. In 2006 and 2008, Cigar Lake experienced water inflows and the mine was allowed to flood. The initial forecast production date of        2007 is expected to be delayed until 2012 as remediation activities continue. In June 2006, it was announced that the Midwest project would proceed. In November 2008, the project was deferred due to economic conditions but continues in the environmental review process and is currently forecast to begin production in 2012. 

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**Manufacturing**

        The value of Saskatchewan’s manufacturing shipments reached $12.2 billion in 2008, up 18.9 per cent from 2007. 

        Manufacturing activity has been traditionally based on agriculture. Food processing is the largest component of the manufacturing sector, accounting for about 21.7 per cent of total manufacturing activity in 2008. Saskatchewan’s manufacturing sector also produces farm machinery and chemical products. The further processing of primary products such as grain, livestock, forest        products and oil is a growing component of Saskatchewan’s manufacturing sector. 

        Saskatchewan’s high technology industry is centred in Saskatoon. Satellite control technology, telecommunications, data communications and agricultural biotechnology products are produced in the Province for domestic and international sale. 

| Value of Manufacturing Shipments                                                                                                                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food Processing                                                                                                                                                                                    |   |   | $ | 2,149 |   | $ | 2,049 |   | $ | 2,351 |   | $ | 2,450 |   | $ | 2,654 |   |   | 5.4 |  % |
| Wood                                                                                                                                                                                               |   |   |   | 680 |   |   | 789 |   |   | 544 |   |   | 297 |   |   | 230 |   |   | (23.8 | )% |
| Metal Fabrication                                                                                                                                                                                  |   |   |   | 499 |   |   | 534 |   |   | 675 |   |   | 701 |   |   | 810 |   |   | 12.9 |  % |
| Machinery                                                                                                                                                                                          |   |   |   | 736 |   |   | 783 |   |   | 796 |   |   | 1,006 |   |   | 1,209 |   |   | 13.2 |  % |
| Chemical Products                                                                                                                                                                                  |   |   |   | 900 |   |   | 934 |   |   | 946 |   |   | 1,105 |   |   | 1,390 |   |   | 11.5 |  % |
| Other                                                                                                                                                                                              |   |   |   | 4,177 |   |   | 4,525 |   |   | 4,554 |   |   | 4,746 |   |   | 5,957 |   |   | 9.3 |  % |
| **Total**                                                                                                                                                                                          |   |   | $ | 9,141 |   | $ | 9,614 |   | $ | 9,865 |   | $ | 10,305 |   | $ | 12,248 |   |   | 7.6 |  % |
| Note:    Components may not add due to rounding.                                                                                                                               |
| Source:  Statistics Canada. Data for chemicals and chemical products, electrical and electronic products are not available from Statistics Canada. These data are now included in Other. |

**Service Industries**

        The service industries form the largest component of the Province’s economy. Services contribute a substantial part of the Province’s economic growth and create the vast majority of jobs. Services accounted for approximately 73.9 per cent of total employment in the Province in 2008. 

        This sector is comprised of six industries, namely: business, personal and community services; finance, insurance and real estate; wholesale and retail trade; transportation; communication and utilities; and, public administration. 

        Of these, the biggest sector in terms of output share and employment is business, personal and community services. Output from the business, personal and community services sector accounts for one-fifth of the entire economy and approximately four out of ten jobs in the Province. This segment of the industry consists of:  education and related services; heath care        institutions, including hospitals, nursing homes and welfare services; religious organizations; amusement and recreation services; business services such as management and business consultants and computer services; personal services; and, accommodation and food. 

        Finance, insurance and real estate, which constitute a large component of the service-producing industries, represented 14.8 per cent of the entire Saskatchewan economy in 2008. This segment includes banks and other institutions delivering financial services, insurance carriers and agencies and real estate companies. 

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**FINANCES OF THE GOVERNMENT**

**Introduction**

        The Saskatchewan Government (Government) has general authority for the administration of provincial activities and functions within the Province. Responsibility for a variety of such activities and functions has been ceded to local government bodies and agencies under authority of a number of provincial statutes. Responsibilities of the Government not ceded to local government bodies        are carried out directly by the Government and through a number of funds and provincial Crown corporations. 

**Funds**

        The General Revenue Fund financial statements have been designed primarily to provide an accounting of the financial resources appropriated by the Saskatchewan Legislative Assembly. The General Revenue Fund is the general fund of the Government to which all public monies received are credited except where the Legislative Assembly has directed otherwise. Substantially all of the debt of        the Government is incurred pursuant to *The Financial Administration Act, 1993* and is repayable from the General Revenue Fund. 

        The General Revenue Fund financial statements are not intended to be summary financial statements that provide a full accounting of the financial affairs and resources of all the entities for which the Government is responsible. Only those transactions pertaining to the receipt of money from or payment of money to the General Revenue Fund are reflected in these statements. The        financial transactions of other Crown entities, such as provincial Crown corporations, agencies, boards, and commissions, are reported separately from the financial transactions of the General Revenue Fund. See the “Government of Saskatchewan Summary Financial Statements” contained within Exhibit (e) Volume 1 of the Public Accounts. 

        A variety of special purpose and other funds are administered by the Government. Included within these funds are pension plans, funds held in trust for third parties under various arrangements and special purpose funds. The assets, liabilities and residual balances of these funds are maintained and reported separately from those of the General Revenue Fund. 

        The General Revenue Fund’s fiscal year begins on April 1 and ends on March 31. Revenue and expenses are recorded on an accrual basis except for defined benefit pension plan costs. 

        During 2008-09, the Government made a change in accounting policy to comply with the recommendations of the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants for long-term debt. On the Statement of Financial Position, loans to Crown corporations and public debt (gross debt net of sinking funds) are now presented net of government business enterprise        specific debt. Additionally, reimbursements of interest from Crown corporation general debt are no longer netted against debt servicing costs on the Statement of Operations. Prior to this change in accounting policy, public debt was presented on a gross basis on the Statement of Financial Position, and all reimbursements of interest from Crown corporations’ debt were netted against debt servicing costs. The 2007-08 amounts have been restated for this change in accounting policy.        

        During 2008-09, the Government determined that agricultural land held for resale, previously presented as a financial asset, is more appropriately classified as tangible capital assets because this land is not expected to be sold within the next year. This change has been applied retroactively with restatement of the 2007-08 amounts. 

        During 2008-09, the Government reclassified certain revenue categories, with restatement of 2007-08 amounts:

| • | Corporation capital tax has been split into two components. Resource surcharge has been moved to non-renewable resources and the remaining component of corporation capital tax has been included with other taxes; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Liquor consumption tax has moved from sales tax to other taxes and sales tax has been renamed provincial sales tax; and |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| • | Crown land sales previously reported in oil revenues has been broken out. |
|--------|---------------------------------------------------------------------------|

        Each year the Minister of Finance presents a budget to the Legislative Assembly that provides estimates of the Government’s planned activities during the fiscal year for the General Revenue Fund. The estimates of expenses in each fiscal year are voted by the Legislative Assembly, with the exception of those expenses for which provision has been made previously by legislation,        such as amounts required to service the debt of the Government. 

        The accounts and financial statements of the Province are examined by the Provincial Auditor who is responsible to the Legislative Assembly and is required to make a report to the Legislative Assembly with respect to each fiscal year. 

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**General Revenue Fund Statement of Cash Requirements and Financing**

        The following table summarizes cash requirements and financing of the General Revenue Fund for the five fiscal years ended March 31, 2009, and the Budget Estimate for fiscal year 2010. 

| General Revenue Fund Statement of Cash Requirements and Financing        |
|--------------------------------------------------------------------------|
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| **Cash Requirements**                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating Activities**                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Revenue                                                |   |   | $ | 7,792 |   | $ | 8,217 |   | $ | 8,643 |   | $ | 9,866 |   | $ | 12,325 |   | $ | 10,661 |   |
|    Expenditures                                           |   |   |   | 7,027 |   |   | 7,678 |   |   | 8,245 |   |   | 8,583 |   |   | 10,355 |   |   | 10,245 |   |
|    Transfers (to) from Fiscal Stabilization Fund          |   |   |   | (382 | ) |   | (139 | ) |   | 0 |   |   | 642 |   |   | 0 |   |   | 0 |   |
|    Transfers (to) from Saskatchewan Infrastructure Fund   |   |   | 0 |   |   | 0 |   |   | (105 | ) |   | 0 |   |   | 0 |   |   | 0 |   |
|    Transfers (to) from Growth and Financial Security Fund |   | -- |   |   | -- |   |   | -- |   |   | -- |   |   | 419 |   |   | 9 |   |
| Budgetary Surplus (Deficit) 1                                            |   |   |   | 383 |   |   | 400 |   |   | 293 |   |   | 641 |   |   | 2,389 |   |   | 425 |   |
| Add (deduct) Non-Cash Items                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization of Foreign Exchange Gains and Losses      |   |   | 2 |   |   | 2 |   |   | 3 |   |   | 2 |   |   | 5 |   |   | 3 |   |
|    Amortization of Capital Assets                         |   |   |   | 104 |   |   | 135 |   |   | 152 |   |   | 148 |   |   | 167 |   |   | 159 |   |
|    Loss on Loans and Investments                          |   |   |   | 2 |   |   | 2 |   |   | 1 |   |   | 9 |   |   | 1 |   |   | 0 |   |
|    Net Change in Non-Cash Operating Activities            |   |   |   | 231 |   |   | 6 |   |   | (17 | ) |   | 228 |   |   | (115 | ) |   | (216 | ) |
|    Earnings Retained in Sinking Funds                     |   |   |   | (43 | ) |   | (63 | ) |   | (46 | ) |   | (46 | ) |   | (79 | ) |   | (99 | ) |
|    Adjustment to Accumulated Deficit                      |   |   |   | (6 | ) |   | 11 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
| **Cash provided by (used for) Operating Activities**                     |   |   |   | 673 |   |   | 493 |   |   | 386 |   |   | 982 |   |   | 2,368 |   |   | 272 |   |
| **Capital Activities**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Acquisition of Capital Assets                          |   |   |   | (150 | ) |   | (218 | ) |   | (248 | ) |   | (278 | ) |   | (342 | ) |   | (466 | ) |
| **Investing Activities**                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Receipts                                               |   |   |   | 450 |   |   | 465 |   |   | 270 |   |   | 124 |   |   | 565 |   |   | 1,141 |   |
|    Disbursements                                          |   |   |   | 617 |   |   | 567 |   |   | 299 |   |   | 407 |   |   | 2,323 |   |   | 1,194 |   |
| **Cash (required for) provided by**                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Investing Activities**                               |   |   |   | (167 | ) |   | (102 | ) |   | (29 | ) |   | (283 | ) |   | (1,758 | ) |   | (53 | ) |
| **Cash provided (required)**                                             |   |   | $ | 356 |   | $ | 173 |   | $ | 109 |   | $ | 421 |   | $ | 268 |   | $ | (247 | ) |
| **Financing Activities**                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from Debt                                                       |   |   | $ | 986 |   | $ | 829 |   | $ | 1,421 |   | $ | 558 |   | $ | 32 |   | $ | 1,190 |   |
| Repayment of Debt                                                        |   |   |   | (1,395 | ) |   | (1,014 | ) |   | (1,293 | ) |   | (646 | ) |   | (755 | ) |   | (960 | ) |
| Proceeds from (repayment of) Debt                                        |   |   |   | (409 | ) |   | (185 | ) |   | 128 |   |   | (88 | ) |   | (723 | ) |   | 230 |   |
| Increase (decrease) in Deposits Held                                     |   |   |   | 411 |   |   | 179 |   |   | (850 | ) |   | 74 |   |   | 209 |   |   | 0 |   |
| Decrease (increase) in Cash & Temporary Investments                  |   |   | (358 | ) |   | (167 | ) |   | 613 |   |   | (407 | ) |   | 246 |   |   | 17 |   |
| **Total Financing**                                                      |   |   | $ | (356 | ) | $ | (173 | ) | $ | (109 | ) | $ | (421 | ) | $ | (268 | ) | $ | 247 |   |
| 1 See Notes 1-9 commencing on page 34.                                   |

18

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**Fiscal Year 2009 Results**

        On June 25, 2009, the Minister of Finance released the financial results for the General Revenue Fund (GRF) for the fiscal year ended March 31, 2009. 

        Total General Revenue Fund (GRF) revenue of $12,325.1 million for the fiscal year ended March 31, 2009 increased by $2,459.4 million, or 24.9 per cent, from the previous fiscal year. The increase in revenue is due primarily to increased non-renewable resource revenue, along with smaller increases in revenues from Government entity transfers, other own-sources and federal        transfers. General Revenue Fund expense (operating expenses including debt servicing expenses) of $10,355.1 million increased by $1,772.3 million, or 20.6 per cent, over the previous year primarily due to spending increases in: Health; Education; Advanced Education, Employment and Labour; Municipal Affairs; Highways and Infrastructure; and a transfer to the Crown Investments Corporation of Saskatchewan of funds provided by the federal government for carbon capture projects. In addition,        the GRF received a net transfer of $418.9 million from the Growth and Financial Security Fund (GFSF) that was established by legislation on May 14, 2008. This net transfer was made up of a $985.0 million transfer from the GRF to GFSF (equal to 50 per cent of the GRF pre-transfer surplus as required by *The Growth and Financial Security Act*) and a transfer of $1,403.9 million back from the GFSF to the GRF for the purpose of debt reduction. As a result, the General Revenue        Fund recorded a surplus of $2,388.9 million for fiscal year 2009, compared to a GRF surplus of $641.4 million for fiscal year 2008. 

        At March 31, 2009, gross debt of the General Revenue Fund was $11,065.8 million compared to $11,577.9 million at March 31, 2008. Approximately 64 per cent of the General Revenue Fund’s gross debt at March 31, 2009 was incurred for general government purposes while 36 per cent was incurred for and reimbursable from Crown corporations. Crown corporation debt at        March 31, 2009 was incurred for general Crown purposes (15 per cent) and for Government Business enterprises (85 per cent). Approximately 97 per cent of the General Revenue Fund’s gross debt was denominated in Canadian dollars while about 3 per cent was denominated in United States dollars at March 31, 2009. 

        During fiscal year 2009, the General Revenue Fund issued and sold $3.3 million in medium and long term debentures for general government purposes. During fiscal year 2009, the General Revenue Fund redeemed outstanding debentures issued for general government purposes totalling $417.6 million, decreased short term debt by $113.3 million and transferred $270.0 million        in long term debentures originally issued for general government purposes to Crown corporations in lieu of issuing new debt in the capital markets for Crown corporation purposes. During the same period, the General Revenue Fund issued and sold $290.5 million in medium and long term debentures for Crown corporations, decreased short term debt by $162.5 million for Crown corporations and redeemed $176.4 million of debentures issued for Crown corporations. Also during the        same period, the General Revenue Fund transferred $270.0 million in long term debentures to Crown corporations as noted above. The General Revenue Fund’s sinking funds totalled $3,364.2 million at March 31, 2009. Contributions to the General Revenue Fund’s sinking funds amounted to $1,943.6 million in fiscal year 2009. 

        Guaranteed debt of the General Revenue Fund was $20.3 million at March 31, 2009, compared to $25.2 million at March 31, 2008. 

**Fiscal Year 2010 Budget Estimate**

        On March 18, 2009, the Minister of Finance tabled the Budget Address and Estimates for the fiscal year ending March 31, 2010. The Budget Estimates for the General Revenue Fund for fiscal year 2010 (the Budget) project total revenue of $10,660.8 million, total expenses of $10,245.4 million, a net transfer from the GFSF to the GRF of $9.1 million, and a budgetary surplus        of $424.5 million. This is estimated to be the sixteenth consecutive balanced budget for the Province since fiscal year 1995. Net cash required for operations and investments for fiscal year 2010 is estimated to be $247.0 million. 

        Expense in the 2009-10 Budget is estimated to be up by $1,128.5 million, or 12.4 per cent, from the 2008-09 Budget. This increase was applied primarily in the areas of: Education and Advanced Education, Employment and Labour ($291.0 million excluding Teachers’ Pensions and Benefits); Health ($329.9 million); Agriculture ($177.5 million); Municipal Affairs        ($104.0 million); and, Social Services ($100.7 million). 

        Revenue in the 2009-10 Budget is estimated to be up $1,294.3 million, or 13.8 per cent, from the 2008-09 Budget. The increase is expected to be generated primarily from increased sales taxes; potash royalties; resource surcharge revenue; and, other own-source revenue. These increases are partially offset by an estimated reduction in other non-renewable resource revenue, primarily oil,        and a reduced special dividend from the Crown Investments Corporation of Saskatchewan. 

        2009-10 interest expense (or debt servicing costs) of $502.5 million is $32.5 million, or 6.1 per cent, lower than the 2008-09 Budget primarily due to reduced debt levels. 

19

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        2009-10 borrowing requirements are estimated at $1,189.6 million; $140.5 million for government requirements, primarily capital financing requirements, and $1,049.1 million for Crown corporations. Debt retirement is estimated at $959.9 million, resulting in an increase in gross debt of $229.7 million. 

        The 2010 Budget estimates total debt (gross debt plus guaranteed debt less equity in sinking funds) at March 31, 2010 to be $8,887.9 million compared to $7,965.8 million forecast at March 31, 2009, an increase of $922.1 million, or 11.6 per cent. Government general debt is estimated to be $4,192.2 million at March 31, 2010 exhibiting no change from the forecast at        March 31, 2009. Crown corporation general debt is estimated to be $844.3 million at March 31, 2010 compared with $736.5 million forecast at March 31, 2009, an increase of $107.8 million or 14.6 per cent. Government Business Enterprise specific debt is estimated to be $3,851.4 million at March 31, 2010 compared to $3,037.1 million forecast at March 31, 2009, an increase of $814.3 million or 26.8 per cent. 

        During the period April 1, 2009 to October 31, 2009, the Government issued and sold debentures and bonds totalling $50.8 million. On June 5, 2009, the Government issued $43.1 million, 3.11 per cent debentures to the Canadian Pension Plan Investment Board (CPPIB) due June 5, 2014. On September 1, the Government issued $4.5 million, 4.16 per cent debentures to the        CPPIB due September 1, 2019. On July 15, 2009, the Government issued $3.2 million 5 year, 1.0 per cent Series 18 Saskatchewan Savings Bonds and redeemed $5.7 million of previous series savings bonds, for a net reduction in savings bonds outstanding of $2.5 million. 

        The 2009-10 Budget continues reporting Summary Financial Budget details that provide a bottom line forecast for all entities over which the Government has control, such as Crown corporations and other entities. The Budget uses a full accrual accounting model for reporting capital costs in both the GRF and the Summary Financial Statements. Since 2004-05, under this full accrual        accounting model, the full cost of capital is no longer included in the expenses within the fiscal year. Rather, the capital is included as part of the Government’s assets. The annual cost of using the asset (i.e. amortization) is recognized as an expense in the annual spending. 

        During 2008-09, the Government made a change in accounting policy to comply with the recommendations of the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants for long-term debt. On the Statement of Financial Position, loans to Crown corporations and public debt (gross debt net of sinking funds) are now presented net of government business enterprise        specific debt. Additionally, reimbursements of interest from Crown corporation general debt are no longer netted against debt servicing costs on the Statement of Operations. Prior to this change in accounting policy, public debt was presented on a gross basis on the Statement of Financial Position, and all reimbursements of interest from Crown corporations’ debt were netted against debt servicing costs. The 2007-08 amounts have been restated for this change in accounting policy.        

        During 2008-09, the Government determined that agricultural land held for resale, previously presented as a financial asset, is more appropriately classified as tangible capital assets because this land is not expected to be sold within the next year. This change has been applied retroactively with restatement of the 2007-08 amounts. 

        During 2008-09, the Government reclassified certain revenue categories, with restatement of 2007-08 amounts:

| • | Corporation capital tax has been split into two components. Resource surcharge has been moved to non-renewable resources and the remaining component of corporation capital tax has been included with other taxes; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Liquor consumption tax has moved from sales tax to other taxes and sales tax has been renamed provincial sales tax; and |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| • | Crown land sales previously reported in oil revenues has been broken out. |
|--------|---------------------------------------------------------------------------|

**Fiscal Year 2010 1st Quarter Report**

        On August 14, 2009, the Minister of Finance released the 1st Quarter Financial Report for the fiscal year ending March 31, 2010. The Report forecasts total revenue of $10,102.4 million, total expense of $10,052.4 million, a pre-transfer surplus of $50.0 million, a net transfer from the GFSF of $374.5 million and a budgetary surplus of $424.5 million.        

        Total revenues are forecast to be down $558.4 million from Budget almost entirely due to a $1.3 billion, or 67.4 per cent, drop in forecast potash revenue due to significant declines in sales and volume levels combined with lower prices and unsettled contracts. The potash revenues decline is partially offset by increased forecast revenues from oil, taxes, federal        transfers and transfers from crown entities. Total expenses are forecast to be down $193.0 million from Budget primarily reflecting expense restraint measures totalling $181.5 million including $132.3 million in capital deferrals. 

        Total debt is forecast to be $8.6 billion, up $835.8 million from actual 2008-09 entirely due to increases in Crown corporation debt. 

**General Revenue Fund Revenue**

        The General Revenue Fund receives revenue from taxes, non-renewable resources, other provincial sources and other governments. 

20

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        The following table sets forth General Revenue Fund revenue by major sources for each of the previous five fiscal years ending March 31, 2009, and the Budget Estimate for fiscal year 2010. Also included is the percentage composition of major revenue sources for the Budget Estimate for fiscal year 2010.

| General Revenue Fund Revenue 1                                                                                                                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
||
||
||
| **Taxation**                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporation Capital 2                                                                                                                                         |   |   | $ | 381,289 |   | $ | 524,650 |   | $ | 513,458 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   |   | 0.0 | % |
|    Corporation Income                                                                                                                                            |   |   |   | 257,679 |   |   | 393,629 |   |   | 554,001 |   |   | 673,641 |   |   | 591,930 |   |   | 624,900 |   |   | 5.9 |   |
|    Individual Income                                                                                                                                             |   |   |   | 1,329,081 |   |   | 1,447,905 |   |   | 1,668,538 |   |   | 1,938,258 |   |   | 1,844,226 |   |   | 1,802,600 |   |   | 16.9 |   |
|    Sales                                                                                                                                                         |   |   |   | 985,079 |   |   | 1,112,350 |   |   | 1,079,794 |   |   | 929,865 |   |   | 1,108,628 |   |   | 1,155,600 |   |   | 10.8 |   |
|    Fuel                                                                                                                                                          |   |   |   | 361,039 |   |   | 376,426 |   |   | 383,576 |   |   | 406,434 |   |   | 429,162 |   |   | 438,000 |   |   | 4.1 |   |
|    Tobacco                                                                                                                                                       |   |   |   | 187,029 |   |   | 171,107 |   |   | 190,334 |   |   | 190,412 |   |   | 199,072 |   |   | 190,500 |   |   | 1.8 |   |
|    Other                                                                                                                                                         |   |   |   | 88,019 |   |   | 89,751 |   |   | 94,844 |   |   | 279,633 |   |   | 257,977 |   |   | 247,300 |   |   | 2.3 |   |
| **Total**                                                                                                                                                                       |   |   |   | 3,589,215 |   |   | 4,115,818 |   |   | 4,484,545 |   |   | 4,418,243 |   |   | 4,430,995 |   |   | 4,458,900 |   |   | 41.8 | % |
| **Non-Renewable Resources**                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Oil                                                                                                                                                           |   |   |   | 906,938 |   |   | 1,124,952 |   |   | 1,318,852 |   |   | 1,246,205 |   |   | 1,616,071 |   |   | 573,100 |   |   | 5.4 | % |
|    Potash                                                                                                                                                        |   |   |   | 305,494 |   |   | 277,967 |   |   | 161,729 |   |   | 432,770 |   |   | 1,364,463 |   |   | 1,926,800 |   |   | 18.1 |   |
|    Crown Land Sales 3                                                                                                                                            |   |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 419,062 |   |   | 928,245 |   |   | 127,800 |   |   | 1.2 |   |
|    Natural Gas                                                                                                                                                   |   |   |   | 212,440 |   |   | 269,074 |   |   | 165,131 |   |   | 133,780 |   |   | 125,922 |   |   | 102,200 |   |   | 1.0 |   |
|    Resource Surcharge 4                                                                                                                                          |   |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 315,230 |   |   | 458,299 |   |   | 461,800 |   |   | 4.3 |   |
|    Other                                                                                                                                                         |   |   |   | 49,319 |   |   | 49,106 |   |   | 48,540 |   |   | 93,299 |   |   | 119,408 |   |   | 177,200 |   |   | 1.7 |   |
| **Total**                                                                                                                                                                       |   |   |   | 1,474,191 |   |   | 1,721,099 |   |   | 1,694,252 |   |   | 2,640,346 |   |   | 4,612,408 |   |   | 3,368,900 |   |   | 31.6 | % |
| **Transfers from Government**                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Entities and Other Revenues**                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown Investments Corporation                                                                                                                                 |   |   |   | 268,000 |   |   | 221,000 |   |   | 167,000 |   |   | 200,000 |   |   | 0 |   |   | 185,000 |   |   | 1.7 | % |
|     - Special dividend                                                                                                                                           |   |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 365,000 |   |   | 110,000 |   |   | 1.0 |   |
|    Liquor & Gaming Authority                                                                                                                                 |   |   |   | 361,044 |   |   | 351,673 |   |   | 370,053 |   |   | 399,531 |   |   | 446,652 |   |   | 440,700 |   |   | 4.1 |   |
|    Other Enterprises and Funds                                                                                                                                   |   |   |   | 55,420 |   |   | 41,214 |   |   | 50,043 |   |   | 53,623 |   |   | 39,564 |   |   | 41,200 |   |   | 0.4 |   |
|    Motor Vehicles Fees                                                                                                                                           |   |   |   | 121,549 |   |   | 135,183 |   |   | 138,908 |   |   | 140,631 |   |   | 151,143 |   |   | 149,400 |   |   | 1.4 |   |
|    Other Licences and Permits                                                                                                                                    |   |   |   | 54,154 |   |   | 41,800 |   |   | 36,787 |   |   | 35,927 |   |   | 36,607 |   |   | 32,800 |   |   | 0.3 |   |
|    Sales, Services, and Service Fees                                                                                                                             |   |   |   | 84,548 |   |   | 89,389 |   |   | 93,332 |   |   | 94,936 |   |   | 101,885 |   |   | 173,100 |   |   | 1.6 |   |
|    Commercial operations                                                                                                                                         |   |   |   | 5,625 |   |   | 64,724 |   |   | 69,575 |   |   | 78,664 |   |   | 86,567 |   |   | 0 |   |   | 0.0 |   |
|    Interest, premium, discount and                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       exchange                                                                                                                                    |   |   |   | 54,735 |   |   | 89,226 |   |   | 96,062 |   |   | 120,502 |   |   | 187,957 |   |   | 176,700 |   |   | 1.7 |   |
|    Other                                                                                                                                                         |   |   |   | 57,040 |   |   | 81,061 |   |   | 53,660 |   |   | 80,714 |   |   | 157,330 |   |   | 66,400 |   |   | 0.6 |   |
| **Total**                                                                                                                                                                       |   |   |   | 1,062,115 |   |   | 1,115,270 |   |   | 1,075,420 |   |   | 1,204,528 |   |   | 1,572,705 |   |   | 1,375,300 |   |   | 12.9 | % |
| **Transfers from the**                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Federal Government**                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Equalization                                                                                                                                                  |   |   |   | 581,570 |   |   | 88,672 |   |   | 12,723 |   |   | 226,146 |   |   | 0 |   |   | 0 |   |   | 0.0 | % |
|    Canada Health Transfer                                                                                                                                        |   |   |   | 452,396 |   |   | 659,558 |   |   | 716,775 |   |   | 739,648 |   |   | 823,496 |   |   | 843,500 |   |   | 7.9 |   |
|    Canada Social Transfer                                                                                                                                        |   |   |   | 262,742 |   |   | 298,756 |   |   | 323,599 |   |   | 325,098 |   |   | 338,301 |   |   | 335,000 |   |   | 3.1 |   |
|    Health Reform Fund                                                                                                                                            |   |   |   | 46,732 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 2.6 |   |
|    Other                                                                                                                                                         |   |   |   | 322,859 |   |   | 218,379 |   |   | 335,732 |   |   | 311,669 |   |   | 547,167 |   |   | 279,200 |   |   | 0.0 |   |
| **Total**                                                                                                                                                                       |   |   |   | 1,666,299 |   |   | 1,265,365 |   |   | 1,388,829 |   |   | 1,602,561 |   |   | 1,708,964 |   |   | 1,457,700 |   |   | 13.7 | % |
| **Total Revenue**                                                                                                                                                               |   |   | $ | 7,791,820 |   | $ | 8,217,552 |   | $ | 8,643,046 |   | $ | 9,865,678 |   | $ | 12,325,072 |   | $ | 10,660,800 |   |   | 100 | % |
| 1  See "General Revenue Fund Statement of Operations and Accumulated Deficit" commencing on page 36.                                                                  |
| 2  Commencing in 2008-09, the non-Resource Surcharge component of Corporation Capital tax is recorded under Taxation - Other. The 2007-08 amounts have been restated. |
| 3  Prior to 2008-09, Crown Land Sales were included in Oil revenues. The 2007-08 amounts have been restated.                                                          |
| 4  Prior to 2008-09, Resource Surcharge revenue was included in Corporation Capital Tax. The 2007-08 amounts have been restated.                                      |

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        Actual General Revenue Fund revenue for fiscal year 2009 increased by $2,459 million, or 24.9 per cent, from fiscal year 2008 to $12,325 million. Total General Revenue Fund revenue for 2009-10 is estimated at $10,660 million, an increase of $1,294 million, or 13.8 per cent, from the 2008-09 Budget Estimates. 

        ***Taxation.***    Provincial taxes include personal and corporate income taxes, corporate capital taxes and sales, tobacco, fuel and other taxes. Tax revenue is estimated to total $4,458 million, or 41.8 per cent, of total General Revenue Fund revenue for 2009-10, an increase of $146 million, or 3.4 per cent, from the 2008-09 Budget Estimates.        The increase is primarily due to increased employment forecasts, stronger than anticipated 2008 assessments and acceleration of installment payments from the federal government. 

        ***Non-Renewable Resources.***    Non-renewable resource revenue is collected by the Government in respect of the production of crude oil, natural gas, potash, uranium and other minerals. Non-renewable resource revenue is estimated to total $3,368 million, or 31.6 per cent, of General Revenue Fund revenue for 2009-10, an increase of $1,095        million, or 48 per cent, from the 2008-09 Budget Estimate. The increase is primarily due to a rise in revenue from potash. 

        ***Transfers from Government Entities and Other Revenues.***    Transfers from Government entities and other revenues include dividends from Provincial Crown Entities, motor vehicle fees, charges for service, licenses and permits and others. These revenues of the Province are estimated at $1,375 million, or 12.9 per cent, of General        Revenue Fund revenue for 2009-10, a decrease of $19 million, or 1.4 per cent, from the 2008-09 Budget Estimate. The change is primarily due to a significant special dividend paid in 2008-09 from the Crown Investments Corporation of Saskatchewan (CIC) and declining other revenue. 

        Transfers from Crown Entities have been principally from CIC and the SLGA. The Government determines the timing and level of transfers from CIC to the extent of available income or surplus. The Budget Estimate includes a provision for a CIC regular dividend of $185 million in 2009-10 as compared to no dividend in the 2008-09 Budget Estimate and a special dividend of        $110 million related to sale of a Crown asset. The transfer from the SLGA includes net income for the year. In 2009-10, this amount is estimated to be $440 million. 

        ***Transfers from the Federal Government.***    Transfers from the Government of Canada consist of payments made to the Province to assist in financing a number of programs. Transfer payments from the federal government are estimated to total $1,457.7 million in 2009-10, a decrease of $72.2 million, or 5.21 per cent from the        2008-09 Budget Estimate of $1,385.5 million. Transfer payments represent 13.67 per cent, of General Revenue Fund revenue in 2009-10. 

        One component of federal transfer payments to Saskatchewan has traditionally been Equalization. Equalization payments are made to provinces that have a below average capacity to raise revenue based on a ten-province standard. Total provincial Equalization payments in 2009-10 are $14.19 billion. 

        The new formula uses a ten-province standard and allows for the exclusion of 100 per cent of natural resource revenue when determining provincial entitlements. Entitlements are then limited by a fiscal capacity cap that requires the inclusion of 100 per cent of provincial natural resource revenue and limits each province’s entitlement to the level of the lowest        non-receiving province. 

        Saskatchewan did not receive an Equalization payment in 2008-09 and will again not be a recipient province in 2009-10 due to the recent strength of the Province’s natural resource revenues. 

        Unconditional federal transfer payments made under the Canada Health Transfer (CHT) and Canada Social Transfer (CST) are authorized by the *Federal-Provincial Fiscal Arrangements Act, 1977*. These federal programs provide “block funding” to all provinces in support of health care, post-secondary education and social assistance. There is no link between provincial        expenditures and these transfers. Combined, these transfers are expected to be $1,178.5 million for 2009-10, an increase of $32.6 million, or 2.8 per cent, from the 2008-09 Budget Estimate of $1,145.9 million. 

        The 2009-10 CHT Budget Estimate is $843.5 million, $32.6 million higher than the 2008-09 Budget Estimate. The increase is due to a 6 per cent increase in the federal CHT program and an increase to Saskatchewan’s population, that is somewhat offset by increases in the value of Saskatchewan’s tax points. 

        The 2009-10 CST Budget Estimate is $335.0 million. There is no change in Saskatchewan’s CST forecast despite a 3 per cent increase in the federal CST program. Saskatchewan’s payment is based on a federal floor payment until each of the other provinces equal per capita payment reaches the same level as Saskatchewan’s payment. 

22

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**General Revenue Fund Expense**

        The following table provides a breakdown of the General Revenue Fund expense on government programs and services for the five fiscal years ended March 31, 2009, and includes the Budget Estimate for fiscal year 2010. 

**General Revenue Fund Expense 1, 2**        (unaudited) 

|                                                                                                                                                                                                                                                                              |   |   | Fiscal Year Ended March 31 |      |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|-----------|--------|--------|
||
||
| Agriculture and Food                                                                                                                                                                                                                                                              |   |   | $                          | 391,566   |   | $      | 422,390 |   | $ | 369,995 |   | $ | 302,197 |   | $ | 424,396 |   | $ | 483,444 |   |   | 4.7 | % |
| Social Services                                                                                                                                                                                                                                                                   |   |   |                       | 603,048   |   |   | 630,819 |   |   | 711,193 |   |   | 615,032 |   |   | 676,604 |   |   | 722,760 |   |   | 7.0 |   |
| Environment                                                                                                                                                                                                                                                                       |   |   |                       | 133,171   |   |   | 146,030 |   |   | 194,151 |   |   | 174,921 |   |   | 177,129 |   |   | 200,380 |   |   | 1.9 |   |
| Finance                                                                                                                                                                                                                                                                           |   |   |                       | 242,537   |   |   | 247,447 |   |   | 258,964 |   |   | 284,463 |   |   | 290,832 |   |   | 329,392 |   |   | 3.2 |   |
| Servicing the Public Debt 3                                                                                                                                                                                                                                                  |   |   |                       | 578,847   |   |   | 544,666 |   |   | 538,303 |   |   | 546,718 |   |   | 520,181 |   |   | 502,500 |   |   | 4.9 |   |
| Health                                                                                                                                                                                                                                                                            |   |   |                       | 2,773,961 |   |   | 2,990,625 |   |   | 3,202,965 |   |   | 3,504,333 |   |   | 3,976,241 |   |   | 4,075,223 |   |   | 39.8 |   |
| Highways and Infrastructure                                                                                                                                                                                                                                                       |   |   |                       | 255,249   |   |   | 263,938 |   |   | 307,310 |   |   | 353,684 |   |   | 482,400 |   |   | 436,990 |   |   | 4.3 |   |
| Justice & Attorney General                                                                                                                                                                                                                                                    |   |   |                       | 202,314   |   |   | 217,415 |   |   | 237,622 |   |   | 129,189 |   |   | 135,648 |   |   | 142,275 |   |   | 1.4 |   |
| Education 4                                                                                                                                                                                                                                                                  |   |   |                       | 1,299,940 |   |   | 1,472,946 |   |   | 1,667,504 |   |   | 1,645,114 |   |   | 2,200,752 |   |   | 2,219,255 |   |   | 21.7 |   |
| Other Expense                                                                                                                                                                                                                                                                     |   |   |                       | 546,070   |   |   | 741,810 |   |   | 757,245 |   |   | 1,027,158 |   |   | 1,470,956 |   |   | 1,133,167 |   |   | 11.1 |   |
| **Total**                                                                                                                                                                                                                                                                         |   |   | $                          | 7,026,703 |   | $      | 7,678,086 |   | $ | 8,245,252 |   | $ | 8,582,809 |   | $ | 10,355,139 |   | $ | 10,245,386 |   |   | 100.0 | % |
| 1  See "General Revenue Fund Statement of Operations and Accumulated Deficit" commencing on page 36.                                                                                                                                                                    |
| 2  Due to a government reorganization, 2008 Actual, 2009 Actual and 2010 Budget Estimate are stated on the new ministry structure of government. Actual expenses prior to 2008 have not been restated and remain based on the old departmental structure of government. |
| 3  During 2008-09, the Government made a change in accounting policy resulting in reimbursements of interest from Crown corporation general debt no longer being netted against debt servicing costs. The 2007-08 amounts have been restated.                           |
| 4  Includes the Ministries of Advanced Education, Employment and Labour and Education (including Teachers' Pensions and Benefits).                                                                                                                                      |

        In fiscal year 2010, 77.9 per cent of the General Revenue Fund estimated total expense is for transfer payments to individuals (e.g. social assistance) or organizations such as health authorities, school boards, and municipalities for their operating, pension and capital requirements. Government organizations account for 13.1 per cent of the estimated expense, 2.6 per cent is for        benefits and pensions and 1.5 per cent is for the amortization of government owned assets and infrastructure. The remaining 4.9 per cent of the estimated total expense is for servicing government debt. General Revenue Fund expenses do not include debt servicing costs incurred by the Government on behalf of Crown entities which are responsible for reimbursing the General Revenue Fund. 

        ***Agriculture.***    The Ministry’s estimated total expense for fiscal year 2010 is $483.4 million, an increase of $177.5 million, or 58.0 per cent, from the fiscal year 2009 estimate. The increase largely reflects additional funding for farm income stabilization programs. 

        ***Social Services.***    The Ministry’s estimated total expense for fiscal year 2010 is $722.8 million, an increase of $100.7 million, or 16.2 per cent, from the fiscal year 2009 estimate. The increase primarily reflects increases for child protection, services for individuals with intellectual disabilities and support for low income        seniors. 

        ***Education (includes Advanced Education, Employment and Labour, Education and Teachers’Pensions and Benefits).***    The estimated total expense for fiscal year 2010 is $2,219.3 million, an increase of $270.1 million, or 13.9 per cent, from the fiscal year 2009 estimate. The increase primarily reflects increases for education property        tax relief, school operating funding and funding which enables universities to limit tuition increases. 

        ***Environment.***    The Ministry’s estimated total expense for fiscal year 2010 is $200.4 million, an increase of $14.2 million, or 7.6 per cent, from the fiscal year 2009 estimate. The increase primarily reflects increased funding for recycling programs. 

23

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        ***Finance.***    The Ministry’s estimated total expense for fiscal year 2010 is $329.4 million, an increase of $30.9 million, or 10.3 per cent, from the fiscal year 2009 estimate due mainly to the conversion of a non-refundable tax credit to a refundable tax credit as well as increased costs for pension and benefit programs. 

        ***Finance Debt Servicing.***    Costs for servicing government debt for fiscal year 2010 are estimated to be $502.5 million, a decrease of $32.5 million, or 6.1 per cent, from the fiscal year 2009 estimate. The decrease is mainly due to reduced borrowing requirements and a reduction in government general gross debt. 

        ***Health.***    The Ministry’s estimated total expense for fiscal year 2010 is $4,075.2 million, an increase of $329.9 million, or 8.8 per cent, from the fiscal year 2009 estimate. The increase primarily reflects increased funding for health facility development, health worker compensation, non-salary inflation and the Saskatchewan        Prescription Drug Plan. 

        ***Highways and Infrastructure.***    The Ministry’s estimated total expense for fiscal year 2010 is $437.0 million, an increase of $49.4 million, or 12.7 per cent, from the fiscal year 2009 estimate. The increase primarily reflects increased funding for rural municipal roads surface preservation. 

        ***Justice and Attorney General.***    The Ministry’s estimated total expense for fiscal year 2010 is $142.3 million, an increase of $5.6 million, or 4.1 per cent, from the fiscal year 2009 estimate due largely to salary and operating increases. 

        ***Other Expenses.***    The other category includes expenses for industry and economic development, government relations, aboriginal affairs and ministries serving central government functions. The category’s estimated total expense for fiscal year 2010 is $1,133.2 million, an increase of $164.5 million, or 17.0 per cent, from the        fiscal year 2009 estimate primarily due to increases for municipal operating and infrastructure grants, policing, corrections and gaming agreements. 

**Transfers To (From) The Growth and Financial Security Fund**

        The Growth and Financial Security Fund (GFSF), was established with the passage of *The Growth and Financial Security Act* on May 14, 2008. The purpose of the GFSF is to assist in the achievement of the Government of Saskatchewan’s long-term objectives by providing for financial security of the Government of Saskatchewan from year to year and to provide a source of funds        that are to be available for appropriation to be used for programs of the Government of Saskatchewan identified as promoting or enhancing the economic development of Saskatchewan. On the coming into force of *The Growth and Financial Security Act*, the balances in the Fiscal Stabilization Fund ($1,528.9 million) and the Saskatchewan Infrastructure Fund ($105.1 million) were transferred to the Growth and Financial Security Fund. The 2009-2010 Budget (including Further        Estimates) estimated a net transfer of $9.1 million from the GFSF to the General Revenue Fund in fiscal year 2010 and a balance of $1,135.3 million at the end of the year. 

        The following table displays net transfers to and from the GFSF for the five fiscal years ended March 31, 2009 and includes the Budget Estimate for fiscal year 2010. Transfers into the GFSF are shown as a positive number and transfers from the GFSF are shown as a negative number. 

|                               |   |   | Fiscal Year Ended March 31 |
|------------------------------------|--------|--------|----------------------------|
||
||
| Growth and Financial Security Fund |   |   |                       | N/A |   |   | N/A |   |   | N/A |   |   | N/A |   | $ | (418,930 | ) | $ | (9,086 | ) |

24

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**Transfers To (From) The Fiscal Stabilization Fund**

        The 2000-01 Budget established the Fiscal Stabilization Fund (FSF) to safeguard the fiscal position of the Province from year to year. The FSF was established through legislation with an initial appropriation from the General Revenue Fund of $775.0 million in fiscal year 2001. 

        *The Growth and Financial Security Act*, passed on May 14, 2008, repealed *The Balanced Budget Act*, *The Fiscal Stabilization Fund Act*, and *The Infrastructure Fund Act*. On the coming into force of *The Growth and Financial Security Act*, the balance in the FSF was transferred to the Growth and Financial Security Fund (GFSF) and the FSF ceased to exist.        

        The following table displays transfers to and from the FSF for the five fiscal years ended March 31, 2009. Transfers into the FSF are shown as a positive number and transfers from the FSF are shown as a negative number. 

**Transfers To (From) The Fiscal Stabilization Fund**

|                                                                                         |   |   | Fiscal Year Ended March 31 |
|----------------------------------------------------------------------------------------------|--------|--------|----------------------------|
||
||
| Fiscal Stabilization Fund                                                                    |   |   | $                          | 382,500 |   | $ | 139,000 |   | $ | 0 |   | $ | 641,434 |   | $ | (1,528,934 | )* |
| *  Transferred to the GFSF upon passage of *The Growth and Financial Security Act* |

**Transfers To (From) The Saskatchewan Infrastructure Fund**

        The Saskatchewan lnfrastructure Fund (SIF) was established at mid-year 2006-07 to support the provision of public infrastructure. The SIF was established through legislation with an initial appropriation from the General Revenue Fund of $100.0 million in fiscal year 2007. The 2008-2009 Budget estimated no transfers to/from the SIF in fiscal year 2009. On the coming into force of        *The Growth and Financial Security Act*, the balance in the SIF was transferred to the GFSF and the SIF ceased to exist. 

        The following table displays transfers to and from the SIF for the five fiscal years ended March 31, 2009. Transfers into the SIF are shown as a positive number and transfers from the SIF are shown as a negative number. 

**Transfers To (From) The Saskatchewan Infrastructure Fund**

|                                                                                              |   |   | Fiscal Year Ended March 31 |
|---------------------------------------------------------------------------------------------------|--------|--------|----------------------------|
||
||
| Saskatchewan Infrastructure Fund                                                                  |   |   |                       | N/A |   |   | N/A |   | $ | 105,090 |   | $ | 0 |   | $ | (105,090 | )* |
| *  Transferred to the GFSF upon the passage of *The Growth and Financial Security Act.* |

**General Revenue Fund Investing Activities**

        Investing activities of the General Revenue fund include loans to and investments in Crown entities and other organizations, individuals and agricultural land held for resale. Cash required by investing activities for fiscal year 2009 was $1,757.8 million as compared to $282.7 million required in fiscal year 2008. Cash required for investing activities for fiscal year 2010 is        estimated at $53.1 million. The changes in 2009 are related primarily to one-time contributions to sinking funds. The changes in 2008 are related primarily to changes in loans to Crown corporations and other loans. 

25

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**Financing and Debt Management**

        Saskatchewan’s financing activities involve the raising of funds through the issue and sale of Province of Saskatchewan securities, changes in deposits held and changes in cash and temporary investments. Funds raised are used to assist in the financing of the capital budgets of, and to provide a temporary credit facility for, Crown corporations as well as for general government        purposes (which includes General Revenue Fund operations and other non-Crown corporation agencies). Crown corporations are responsible for reimbursing the General Revenue Fund for the costs of servicing the interest and principal associated with debt borrowed on their behalf. In addition to direct borrowing in the name of the Province, the Government provides loan guarantees for certain purposes such as bonds issued in the name of Crown corporations that are offered for sale to        Saskatchewan residents. 

        At March 31, 2009, gross debt of the General Revenue Fund amounted to $11,065.8 million as compared to $11,577.9 million at March 31, 2008. Approximately 36 per cent of the gross debt of the General Revenue Fund at March 31, 2009, was reimbursable from and was incurred for Crown corporations and Government Business Enterprises (GBEs). Approximately        64 per cent of the General Revenue Fund gross debt at March 31, 2009, was incurred for general government purposes. 

        Approximately 97 per cent of the gross debt of the General Revenue Fund was denominated in Canadian dollars while about 3 per cent was denominated in U.S. dollars at March 31, 2009. Included in the debt denominated in Canadian dollars are certain financing transactions that involved borrowing in foreign currencies and swapping or hedging the liability into Canadian dollars to        eliminate the foreign exchange rate risk to the General Revenue Fund. (Foreign exchange adjustments resulted in an increase in gross debt of $63.9 million at March 31, 2009, compared to a decrease of $34.4 million at March 31, 2008). 

        Securities issued and sold include Province of Saskatchewan promissory notes and debentures. At March 31, 2009, promissory notes and debentures outstanding were $154.2 million and $10,911.6 million, respectively. Promissory notes and debentures outstanding at March 31, 2008, were $430.0 million and $11,147.9 million, respectively.        

        During fiscal year 2009, the Government issued and sold $3.3 million in debentures for general government purposes. During the same period, the Government redeemed outstanding debentures issued for general government purposes totalling $417.6 million and promissory notes outstanding for general government purposes decreased by $113.3 million. Also, the GRF transferred        $270.0 million in long term debentures originally issued for general purposes to Crown corporations in lieu of issuing new debt in the capital markets for Crown corporation purposes. 

        During the year, $290.5 million in debentures were issued and sold for the purposes of Crown corporations. Redemptions of debentures issued for Crown corporations amounted to $176.4 million during fiscal 2009 and promissory notes outstanding for Crown corporations decreased by $162.5 million. Also, during the same period, the General Revenue Fund transferred        $270.0 million in long term debentures to Crown corporations as noted above. 

        The Government’s sinking funds totalled $3,364.2 million at March 31, 2009. Contributions to the Government’s sinking funds amounted to $1,943.6 million in fiscal year 2009. 

26

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        The following table sets forth the debt of the General Revenue Fund (including guarantees) for the five fiscal years ended March 31, 2009. 

|                                                                                                                                                            |   |   | Total Debt 1 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|
||
||
||
| **Promissory Notes**                                                                                                                                            |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (for the purpose of)                                                                                                                          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown Corporations 2                                                                                                                          |   |   | $            | 202,626 |   | $ | 150,760 |   | $ | 109,660 |   | $ | 316,702 |   | $ | 154,197 |   |
|    General Government Purposes 3                                                                                                                 |   |   |         | 74 |   |   | 40 |   |   | 113,540 |   |   | 113,298 |   |   | 0 |   |
| **Total 4**                                                                                                                                                     |   |   |         | 202,700 |   |   | 150,800 |   |   | 223,200 |   |   | 430,000 |   |   | 154,197 |   |
| **Debentures**                                                                                                                                                  |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (for the purpose of)                                                                                                                          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown Corporations 2                                                                                                                          |   |   |         | 3,616,114 |   |   | 3,788,094 |   |   | 3,799,607 |   |   | 3,442,836 |   |   | 3,802,379 |   |
|    General Government Purposes 3                                                                                                                 |   |   |         | 8,254,082 |   |   | 7,994,414 |   |   | 8,034,489 |   |   | 7,705,073 |   |   | 7,109,217 |   |
| **Total**                                                                                                                                                       |   |   |         | 11,870,196 |   |   | 11,782,508 |   |   | 11,834,096 |   |   | 11,147,909 |   |   | 10,911,596 |   |
| **Gross Debt**                                                                                                                                                  |   |   |         | 12,072,896 |   |   | 11,933,308 |   |   | 12,057,296 |   |   | 11,577,909 |   |   | 11,065,793 |   |
| **Less: Equity in Sinking Funds**                                                                                                                               |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (for the purpose of)                                                                                                                          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown Corporations                                                                                                                            |   |   |         | 235,376 |   |   | 307,869 |   |   | 352,199 |   |   | 365,210 |   |   | 400,306 |   |
|    General Government Purposes 3                                                                                                                 |   |   |         | 708,582 |   |   | 797,231 |   |   | 903,091 |   |   | 994,048 |   |   | 2,963,931 |   |
| **Total**                                                                                                                                                       |   |   |         | 943,958 |   |   | 1,105,100 |   |   | 1,255,290 |   |   | 1,359,258 |   |   | 3,364,237 |   |
|                                                                                                                                                            |   |   |         | 11,128,938 |   |   | 10,828,208 |   |   | 10,802,006 |   |   | 10,218,651 |   |   | 7,701,556 |   |
| **Guaranteed Debt**                                                                                                                                             |   |   |         | 55,996 |   |   | 46,122 |   |   | 34,359 |   |   | 25,227 |   |   | 20,305 |   |
| **Debt plus Guaranteed Debt**                                                                                                                                   |   |   | $            | 11,184,934 |   | $ | 10,874,330 |   | $ | 10,836,365 |   | $ | 10,243,878 |   | $ | 7,721,861 |   |
| 1  Debt repayable in foreign currency has been restated in Canadian dollar equivalents based on the exchange rate in effect on March 31 of each year. |
| 2  These enterprises are responsible for reimbursing the General Revenue Fund for the repayment of principal and interest.                            |
| 3  Debt for General Government Purposes is incurred for the general purposes of, and is repayable out of, the General Revenue Fund.                   |

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        The following table sets forth the allocation of gross debt of the General Revenue Fund for the five fiscal years ended March 31, 2009. 

|                                                                                                                                                            |   |   | Gross Debt by Allocation 1 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|
||
||
||
| **Crown Corporations**                                                                                                                                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Information Services Corporation of Saskatchewan                                                                                              |   |   |                            | 47,000 |   |   | 36,500 |   |   | 24,547 |   |   | 13,547 |   |   | 13,547 |   |
|    Investment Saskatchewan Inc.                                                                                                                  |   |   |                            | 20,919 |   |   | 20,919 |   |   | 10,919 |   |   | 3,919 |   |   | 0 |   |
|    Municipal Financing Corporation of Saskatchewan                                                                                               |   |   |                            | 12,148 |   |   | 13,301 |   |   | 22,276 |   |   | 26,230 |   |   | 39,092 |   |
|    Saskatchewan Crop Insurance Corporation                                                                                                       |   |   |                            | 221,579 |   |   | 153,000 |   |   | 115,800 |   |   | 100,000 |   |   | 50,000 |   |
|    Saskatchewan Housing Corporation                                                                                                              |   |   |                            | 83,004 |   |   | 83,004 |   |   | 83,004 |   |   | 83,004 |   |   | 52,004 |   |
|    Saskatchewan Opportunities Corporation                                                                                                        |   |   |                            | 0 |   |   | 3,000 |   |   | 18,000 |   |   | 31,844 |   |   | 37,543 |   |
|    Saskatchewan Power Corporation                                                                                                                |   |   |                            | 2,236,451 |   |   | 2,457,131 |   |   | 2,525,322 |   |   | 2,359,597 |   |   | 2,515,488 |   |
|    Saskatchewan Telecommunications                                                                                                               |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Holding Corporation                                                                                                         |   |   |                            | 393,574 |   |   | 393,574 |   |   | 360,976 |   |   | 347,379 |   |   | 355,600 |   |
|    Saskatchewan Water Corporation                                                                                                                |   |   |                            | 60,336 |   |   | 33,391 |   |   | 34,970 |   |   | 41,074 |   |   | 43,583 |   |
|    SaskEnergy Incorporated                                                                                                                       |   |   |                            | 743,729 |   |   | 745,034 |   |   | 713,453 |   |   | 752,944 |   |   | 849,819 |   |
| **Total Crown Corporations**                                                                                                                                    |   |   |                            | 3,818,740 |   |   | 3,938,854 |   |   | 3,909,267 |   |   | 3,759,538 |   |   | 3,956,576 |   |
| **General Government Purposes**                                                                                                                                 |   |   |                            | 8,254,156 |   |   | 7,994,454 |   |   | 8,148,029 |   |   | 7,818,371 |   |   | 7,109,217 |   |
| **Gross Debt**                                                                                                                                                  |   |   | $                               | 12,072,896 |   | $ | 11,933,308 |   | $ | 12,057,296 |   | $ | 11,577,909 |   | $ | 11,065,793 |   |
| 1  Debt repayable in foreign currency has been restated in Canadian dollar equivalents based on the exchange rate in effect on March 31 of each year. |

28

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        The following table sets forth the composition of debentures issued and redeemed by the General Revenue Fund for the five fiscal years ended March 31, 2009. 

**Composition of Debentures Issued and Redeemed 1**        (unaudited) 

|                                                                                                                                                   |   |   | Fiscal Year Ended March 31 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|
||
||
| **Total Debentures Issued**                                                                                                                            |   |   | $                          | 986.5 |   | $ | 829.5 |   | $ | 1,348.8 |   | $ | 419.2 |   | $ | 293.8 |   |
| **Total Debentures Redeemed**                                                                                                                          |   |   |                       | 1,362.6 |   |   | 962.5 |   |   | 1,293.3 |   |   | 1,071.0 |   |   | 869.8 |   |
| **Increase (Decrease) in Debentures**                                                                                                                  |   |   | $                          | (376.1 | ) | $ | (133.0 | ) | $ | 55.5 |   | $ | (651.8 | ) | $ | (576.0 | ) |
| 1  All foreign currency debt has been stated in the equivalent Canadian funds based on the exchange rate in effect on March 31 of each year. |

        The following table sets forth the composition of outstanding debentures of the General Revenue Fund for the five fiscal years ended March 31, 2009. 

**Composition of Debentures Outstanding 1**

|                                                                                                                                                   |   |   | Fiscal Year Ended March 31 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|
||
||
| **Debentures Outstanding**                                                                                                                             |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| To the Public                                                                                                                                          |   |   | $                          | 10,892.9 |   | $ | 10,897.1 |   | $ | 10,982.7 |   | $ | 10,349.3 |   | $ | 10,166.5 |   |
| To the Canada Pension Plan                                                                                                                             |   |   |                       | 977.3 |   |   | 885.4 |   |   | 851.4 |   |   | 798.6 |   |   | 745.1 |   |
| Other Obligations                                                                                                                                      |   |   |                       | 0.0 |   |   | 0.0 |   |   | 0.0 |   |   | 0.0 |   |   | 0.0 |   |
| **Total**                                                                                                                                              |   |   | $                          | 11,870.2 |   | $ | 11,782.5 |   | $ | 11,834.1 |   | $ | 11,147.9 |   | $ | 10,911.6 |   |
| 1  All foreign currency debt has been stated in the equivalent Canadian funds based on the exchange rate in effect on March 31 of each year. |

        The Canada Pension Plan (“CPP”) is a compulsory national pension plan in which residents of all provinces, except Quebec, participate. Prior to January 1, 1998, surplus contributions to the CPP were invested in non-marketable securities issued by participating provinces, provincially guaranteed Crown corporations and the federal government. The rate of interest charged by        the CPP was generally lower than the rate available to the Saskatchewan government in the public market for debt of comparable maturity as CPP rates were based on the federal government long term, public market borrowing costs. 

        In 1997, the federal government passed legislation which took effect January 1, 1998 and changed the nature of CPP borrowing. The legislation specifies that surplus CPP funds must be invested in a diversified portfolio of securities, at arm’s length from government. While provinces continue to have access to CPP funds, they are now required to pay rates comparable to their own        cost of borrowing, rather than the federal long term rate. 

        Provincial securities sold to the CPP prior to July 1, 2005 are payable 20 years after their respective dates of issue. Effective July 1, 2005, no new loan capital is available to provinces. However, provinces are permitted to roll over maturing securities and may choose the term of the new securities within the parameters of not less than five years and not more than 30 years.        

        The securities are not negotiable, transferable or assignable but, if issued prior to July 1, 2005, may be redeemed by the CPP in whole or in part, before maturity, under certain circumstances. The securities are callable in whole or in part, before maturity, at the option of the Province. 

29

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        The following table summarizes various Provincial Government debt indicators at year end for the five fiscal years ended March 31, 2009. 

**Debt Indicators**        (unaudited)

|                                                                                                                                                                                                                                                                                  |   |   | At March 31 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
||
||
| **Total debt of the General Revenue Fund**                                                                                                                                                                                                                                            |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Per Capita 1                                                                                                                                                                                                                                                   |   |   | $           | 11,298 |   | $ | 11,012 |   | $ | 10,870 |   | $ | 10,276 |   | $ | 7,655 |   |
|    As a Percentage of Saskatchewan Gross Domestic                                                                                                                                                                                                                      |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Product 2                                                                                                                                                                                                                                    |   |   |        | 27.9% |   |   | 25.0% |   |   | 23.6% |   |   | 20.0% |   |   | 11.6% |   |
| **Total debt of the General Revenue Fund -**                                                                                                                                                                                                                                          |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **General Government Purpose Portion 3**                                                                                                                                                                                                                            |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Per Capita 1                                                                                                                                                                                                                                                   |   |   | $           | 7,677 |   | $ | 7,334 |   | $ | 7,301 |   | $ | 6,870 |   | $ | 4,128 |   |
|    As a Percentage of General Revenue Fund Revenue                                                                                                                                                                                                                     |   |   |        | 97.5% |   |   | 88.1% |   |   | 84.2% |   |   | 69.6% |   |   | 33.8% |   |
|    As a Percentage of Saskatchewan Gross Domestic                                                                                                                                                                                                                      |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Product 2                                                                                                                                                                                                                                    |   |   |        | 19.0% |   |   | 16.6% |   |   | 15.9% |   |   | 13.4% |   |   | 6.3% |   |
| **Annual Interest Payments on the General**                                                                                                                                                                                                                                           |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Government Purpose Portion of Gross Debt of**                                                                                                                                                                                                                     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **the General Revenue Fund**                                                                                                                                                                                                                                        |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    As a Percentage of General Revenue Fund Revenue                                                                                                                                                                                                                     |   |   |        | 7.4% |   |   | 6.6% |   |   | 6.2% |   |   | 5.6% |   |   | 4.2% |   |
|                                                                                                                                                                                                                                                                                  |
| 1  Debt plus guaranteed debt per capita for 2004 through 2008 are calculated by dividing the debt at March 31 by the population of the Province on July 1 of the same calendar year.                                                                                        |
| 2  Debt plus guaranteed debt as a percentage of Saskatchewan's GDP are calculated by dividing the debt at March 31 by the Province's current GDP for the previous calendar year.                                                                                            |
| 3  Debt plus guaranteed debt of the General Revenue Fund - General Government Purpose Portion does not include debt incurred by the General Revenue Fund on behalf of Crown entities for which the crown entities are responsible for reimbursing the General Revenue Fund. |

        The following table sets forth the debt maturity schedule, by principal amount and currency of payment, of the General Revenue Fund gross debt at March 31, 2009. 

**Debt Maturity Schedule**

| Fiscal Yearending March 31 |   |   |   | CanadianDollar Debt |   |   | U.S. Dollar Debt(Canadian Dollars)1 |   |   | Total(Canadian Dollars) |   |
|----------------------------|--------|--------|--------|---------------------|--------|--------|-------------------------------------|--------|--------|-------------------------|--------|
||
| 2010                       |   |   | $      | 1,087.0             |   | $      | 0.0                                 |   | $      | 1,087.0                 |   |
| 2011                       |   |   |   | 649.3               |   |   | 0.0                                 |   |   | 649.3                   |   |
| 2012                       |   |   |   | 261.6               |   |   | 0.0                                 |   |   | 261.6                   |   |
| 2013                       |   |   |   | 1,162.9             |   |   | 0.0                                 |   |   | 1,162.9                 |   |
| 2014                       |   |   |   | 740.4               |   |   | 63.0                                |   |   | 803.4                   |   |
| **1 - 5 years**            |   |   | $      | 3,901.2             |   | $      | 63.0                                |   | $      | 3,964.2                 |   |
| 2015-2019                  |   |   |   | 1,983.6             |   |   | 0.0                                 |   |   | 1,983.6                 |   |
| 2020-2024                  |   |   |   | 1,220.4             |   |   | 283.6                               |   |   | 1,504.0                 |   |
| 2025-2029                  |   |   |   | 596.2               |   |   | 0.0                                 |   |   | 596.2                   |   |
| 2030-2034                  |   |   |   | 1,255.0             |   |   | 0.0                                 |   |   | 1,255.0                 |   |
| 2035-2039                  |   |   |   | 862.8               |   |   | 0.0                                 |   |   | 862.8                   |   |
| After 2039                 |   |   |   | 900.0               |   |   | 0.0                                 |   |   | 900.0                   |   |
|                       |   |   | $      | 10,719.2            |   | $      | 346.6                               |   | $      | 11,065.8                |   |

Debentures repayable in U.S. dollars of $275.0 million have been converted to Canadian dollars at the exchange rate in effect at March 31, 2009. (U.S. dollars — $1.2602)

30

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----

        The following table sets forth the General Revenue Fund gross debt characteristics at March 31, 2009. 

**Debt Characteristics**        (unaudited) 

|                                                                    |   |   |   | As a                    Percentage                    of Total |   | Weighted Average                    Term to                    Maturity 1                    (years)                                      |   | Weighted Average                Interest Rate |
|-------------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|
|                                                                    |   |   |   |                                                           |   |                                                                                                                                      |   |                                          |   |   |   |
| Public Debentures 2                                                     |   |   |   | 92%                                                            |   | 12.52                       |   |                                          | 6.51% |   |
| Canada Pension Plan Debentures                                          |   |   |   | 7%                                                             |   | 7.13                                  |   |                                          | 7.55% |   |
| Promissory Notes                                                        |   |   |   | 1%                                                             |   | 0.02                                  |   |                                          | 0.24% |   |
| **Gross Debt**                                                          |   |   |   | 100%                                                           |   |                                                                                                                                      |   |                                          |   | 6.49% |   |
| 1  Weighted by the total principal amount of each loan issue. |
| 2  Includes other debentures.                                 |
|                                                                    |

        Interest on the General Revenue Fund debt amounted to $738.4 million in fiscal year 2009. Of this amount, $238.9 million ($2.1 million short term and $236.8 million long term) was reimbursed by the Crown corporations and GBEs. The non-reimbursable portion of gross interest expense was $499.5 million. 

        Debt guaranteed by the General Revenue Fund amounted to $20.3 million at March 31, 2009, compared to $25.2 million at March 31, 2008. This decrease was due primarily to debt reduction of $2.4 million for Breeder Association loan guarantees ($10.5 million debt outstanding at March 31, 2009) and $2.9 million Feeder Association loan        guarantees ($6.1 million debt outstanding at March 31, 2009). 

        The following table sets forth this guaranteed debt for the five fiscal years ended March 31, 2009. 

**Guaranteed Debt**

|            |   |   | At March 31 |
|-----------------|--------|--------|-------------|
||
||
| Guaranteed Debt |   |   | $           | 56.0 |   | $ | 46.1 |   | $ | 34.4 |   | $ | 25.2 |   | $ | 20.3 |   |

        Guaranteed debt is reported net of loss provisions (2009 — $0.6 million; 2008 — $0.5 million; 2007 — $0.5 million; 2006 — $0.5 million; 2005 — $1.4 million). 

        The major decrease in guaranteed debt between March 31, 2005, and March 31, 2009, is due to the elimination of the liability for NewGrade Energy Inc. debt ($29.1 million). 

        Authority for the Government to guarantee the debt of others must be provided in specific legislation since no general statutory authority exists. *The Financial Administration Act, 1993* provides that no department, board, commission or agent of the Government shall provide a guarantee or a program of guarantees of loans or other liabilities by which guarantee or program of        guarantees the Government of Saskatchewan would be liable to make any payment with respect to the loans or liabilities, unless the guarantee or program of guarantees, as the case may be, has received the prior approval of the Minister of Finance. Certain Crown corporations located within the Province are separately authorized to provide guarantees of the debt of others. Such guarantees are not contingent liabilities of the General Revenue Fund, and the amounts so guaranteed are not        included in the above table or in the financial statements of the General Revenue Fund. 

31

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----

        The Government of Saskatchewan provided Royal Trust with a guarantee and indemnity in 1983 respecting the liability and obligations of CIC Mineral Interest Corporation pursuant to each of two lease agreements of CIC Mining Corporation (previously the Potash Corporation of Saskatchewan Mining Limited) for the purchase of mining equipment. The Government has been released from all such        guarantees but remains contingently liable for indemnity related to damages caused by the equipment and provisions governing the payment of taxes for the period during which its guarantees to Royal Trust were in place. 

**Debt Record**

        The Government has always paid the full face amount of the principal of and interest on every direct obligation issued by it and every indirect obligation on which it has been required to meet its guarantee, all promptly when due in the lawful currency of the country where payable at the time of payment thereof, subject during wartime to any applicable laws and regulations forbidding        trading with the enemy. 

**Other Public Sector Debt**

        The General Revenue Fund financial statements do not disclose the debt of all public entities located within the Province. Responsibility for a variety of provincial functions and powers has been transferred to local government bodies, including regional health authorities, municipalities, school boards and certain other local authorities. Regional health authorities may raise money        for their purposes through certain service charges. The authorities have power to borrow money up to a prescribed amount above which the approval of the Minister of Health is required. Other local bodies raise money for their purposes, in the case of municipalities by way of direct levy on persons or property within their jurisdiction or, in other cases, by requisition on municipalities, and may have power to borrow money, subject to the approval of the Saskatchewan Municipal Board. The        Saskatchewan Municipal Board is an autonomous regulatory body established by Provincial statute with broad powers to regulate local government activity. 

        Notwithstanding that significant financial assistance for operating and capital expenditures is made available to local government bodies by appropriation of the Legislative Assembly, the activities of local government bodies, including borrowing, are conducted independently of the Government. The Government is not directly or contingently liable for debt incurred by these bodies (with        the exception of certain debt of certain regional health authorities), and, relative to the gross debt of the General Revenue Fund and the GDP of the Province, debt incurred by these bodies is not significant. 

32

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**GENERAL REVENUE FUND SUPPLEMENTARY FINANCIAL INFORMATION**

|   |   |                                                                 | Page     |   |
|--------|--------|----------------------------------------------------------------------|----------|--------|
| I.     |   | General Revenue Fund Statement of Financial Position                 | 34  |   |
| II.    |   | General Revenue Fund Statement of Operations and Accumulated Deficit | 36  |   |
| III.   |   | General Revenue Fund Statement of Change in Net Debt                 | 39  |   |
| IV.    |   | General Revenue Fund Statement of Investing Activities               | 40  |   |
| V.     |   | General Revenue Fund Statement of Cash Flow                          | 42  |   |
| VI.    |   | General Revenue Fund Notes to the Financial Statements               | 43  |   |

        The information contained in the following tables and notes, except for information marked as unaudited, has been derived from the financial statements of the General Revenue Fund, which have been examined by the Provincial Auditor for the five years ended March 31, 2009. 

33

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**Government of the Province of Saskatchewan**

**General Revenue Fund Statement of Financial Position 1-9**

|                                                                 |   |   | At March 31 |
|----------------------------------------------------------------------|--------|--------|-------------|
||
||
| **Financial Assets**                                                 |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash and temporary investments                                 |   |   | $           | 859,587 |   | $ | 1,027,206 |   | $ | 414,469 |   | $ | 821,475 |   | $ | 575,895 |   |
|    Accounts receivable                                |   |   |        | 657,480 |   |   | 629,062 |   |   | 700,198 |   |   | 736,377 |   |   | 915,389 |   |
|    Agricultural land held for resale 8                |   |   |        | 106,508 |   |   | 105,343 |   |   | 103,447 |   |   | 0 |   |   | 0 |   |
|    Deferred charges                                   |   |   |        | 55,442 |   |   | 39,382 |   |   | 22,335 |   |   | 19,236 |   |   | 14,166 |   |
|    Loans to Crown corporations 9                      |   |   |        | 3,583,364 |   |   | 3,630,985 |   |   | 3,557,068 |   |   | 461,161 |   |   | 520,229 |   |
|    Other loans                                        |   |   |        | 128,911 |   |   | 132,192 |   |   | 129,767 |   |   | 129,635 |   |   | 122,454 |   |
|    Equity investment in Crown Investments             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Corporation of Saskatchewan      |   |   |        | 1,181,152 |   |   | 1,181,152 |   |   | 1,181,152 |   |   | 1,181,152 |   |   | 1,051,152 |   |
| **Total Financial Assets**                                           |   |   |        | 6,572,444 |   |   | 6,745,322 |   |   | 6,108,436 |   |   | 3,349,036 |   |   | 3,199,285 |   |
| **Liabilities**                                                      |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Accounts payable and accrued liabilities           |   |   |        | 1,300,639 |   |   | 1,339,590 |   |   | 1,384,259 |   |   | 1,653,449 |   |   | 1,721,516 |   |
|    Deposits held                                      |   |   |        | 981,615 |   |   | 1,161,000 |   |   | 310,893 |   |   | 385,388 |   |   | 594,355 |   |
|    Unearned revenue                                   |   |   |        | 62,776 |   |   | 69,298 |   |   | 69,520 |   |   | 72,823 |   |   | 76,454 |   |
|    Public Debt (net of sinking fund equity) 9         |   |   |        | 11,128,938 |   |   | 10,828,208 |   |   | 10,802,006 |   |   | 0 |   |   | 0 |   |
|       Government general debt          |   |   |        | 0 |   |   | 0 |   |   | 0 |   |   | 6,824,323 |   |   | 4,145,286 |   |
|       Crown corporation general debt 9 |   |   |        | 0 |   |   | 0 |   |   | 0 |   |   | 461,161 |   |   | 520,229 |   |
|    Unamortized foreign exchange gain (loss)           |   |   |        | (21,136 | ) |   | (16,828 | ) |   | (12,573 | ) |   | 606 |   |   | (10,503 | ) |
| **Total Liabilities**                                                |   |   |        | 13,452,832 |   |   | 13,381,268 |   |   | 12,554,105 |   |   | 9,397,750 |   |   | 7,047,337 |   |
| **Net Debt**                                                         |   |   |        | (6,880,388 | ) |   | (6,635,946 | ) |   | (6,445,669 | ) |   | (6,048,714 | ) |   | (3,848,052 | ) |
| **Non-financial Assets**                                             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Prepaid expenses                                   |   |   |        | 2,113 |   |   | 6,102 |   |   | 6,299 |   |   | 6,685 |   |   | 6,902 |   |
|    Inventories held for consumption                   |   |   |        | 57,435 |   |   | 66,784 |   |   | 74,626 |   |   | 85,269 |   |   | 97,345 |   |
|    Tangible capital assets 8                          |   |   |        | 1,773,630 |   |   | 2,240,259 |   |   | 2,363,518 |   |   | 2,596,969 |   |   | 2,772,877 |   |
| **Total Non-financial Assets**                                       |   |   |        | 1,833,178 |   |   | 2,313,145 |   |   | 2,444,443 |   |   | 2,688,923 |   |   | 2,877,124 |   |
| **Accumulated Deficit**                                              |   |   | $           | (5,047,210 | ) | $ | (4,322,801 | ) | $ | (4,001,226 | ) | $ | (3,359,791 | ) | $ | (970,928 | ) |
|                                                                 |

| 1 | The Government also prepares summary financial statements. The Government's summary financial statements provide a full accounting of the financial affairs and resources of all entities for which the Government is responsible. The financial transactions of the General Revenue Fund and provincial Crown corporations, agencies, boards, and commissions are included in the Government's summary financial statements.                The Government's summary financial statements are included in Exhibit (e) Volume 1 of the Public Accounts. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | In his opinion on the 2005, 2006, 2007, 2008 and 2009 General Revenue Fund financial statements, the Provincial Auditor directs the reader to refer to the Government's summary financial statements to understand and assess the Government's management of public financial affairs and resources as a whole. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The General Revenue Fund's financial statements for 2005 are accompanied by a report of the Provincial Auditor which provides that, except for the effects of the following reservations, the financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | It is the auditor's opinion that pension liabilities should be recorded in the financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit would increase by $4,143 million and operating expense would increase and surplus would decrease by $120 million. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The financial statements show a liability of $749 million owed to the Fiscal Stabilization Fund and an expense of $383 million to the Fiscal Stabilization Fund. It is the auditor's opinion that, instead of recording an expense of $383 million, the financial statements should record an asset of $749 million owed from the Fiscal Stabilization Fund. Had this been done, financial assets would increase and                accumulated deficit would decrease by $749 million, and operating expense would decrease and surplus would increase by $383 million. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | It is the auditor's opinion that loans to Crown corporations include $44 million that should be recorded as an expense as they can only be repaid if the Government provides money to repay the loans. Had this amount been recorded as an expense, loans receivable from Crown corporations would decrease and accumulated deficit would increase by $44 million. Also, operating expense would increase and surplus would                decrease by $12 million. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The General Revenue Fund's financial statements for 2006 are accompanied by a report of the Provincial Auditor which provides that, except for the effects of the following reservations, the financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | It is the auditor's opinion that pension liabilities should be recorded in the financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit would increase by $4,246 million and expenses would increase and surplus would decrease by $103 million. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

34

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|   | b. | The financial statements show a liability of $888 million owed to the Fiscal Stabilization Fund and an expense of $139 million to the Fiscal Stabilization Fund. It is the auditor's opinion that, instead of recording an expense, the financial statements should record an asset equal to the liability it records. Had this been done, financial assets would increase and accumulated deficit would decrease by $888                million, and transfer to the Fiscal Stabilization Fund would decrease and surplus would increase by $139 million. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | It is the auditor's opinion that loans receivable from Crown corporations include $24 million that should be recorded as an expense as they can only be repaid if the Government provides money from the General Revenue Fund to repay the loans. Had this amount been recorded as an expense, loans receivable from Crown corporations would decrease and accumulated deficit would increase by $24 million. Also, operating                expense would decrease and surplus would increase by $20 million. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | The General Revenue Fund's financial statements for 2007 are accompanied by a report of the Provincial Auditor which provides that, except for the effects of the following reservations, the financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | It is the auditor's opinion that pension liabilities should be recorded in the financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit would increase by $4,659 million and expenses would increase and surplus would decrease by $413 million. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The Government records transactions between the General Revenue Fund and the Fiscal Stabilization Fund and the Saskatchewan Infrastructure Fund as revenue or expense of the General Revenue Fund. It is the auditor's opinion that, instead of recording an expense, the financial statements should record an asset equal to the amount it owed or paid to these funds. Had this been done, financial assets would increase                and accumulated deficit would decrease by $993 million, and transfer to the Saskatchewan Infrastructure Fund would decrease and surplus would increase by $105 million. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | The General Revenue Fund's financial statements for 2008 are accompanied by a report of the Provincial Auditor which provides that, except for the effects of the following reservations, the financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | It is the auditor's opinion that pension liabilities should be recorded in the financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit would increase by $5,088 million and, for the year, expenses would increase and surplus would decrease by $429 million. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The Government records transactions between the General Revenue Fund and the Fiscal Stabilization Fund and the Saskatchewan Infrastructure Fund as revenue or expense of the General Revenue Fund. It is the auditor's opinion that, instead of recording an expense, the financial statements should record an asset equal to the amount it owed or paid to these funds. Had this been done, financial assets would increase                and accumulated deficit would decrease by $1,634 million, and, for the year, transfer to the Fiscal Stabilization Fund would decrease and surplus would increase by $641 million. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The General Revenue Fund's financial statements for 2009 are accompanied by a report of the Provincial Auditor which provides that, except for the effects of the following reservations, the financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | It is the auditor's opinion that pension liabilities should be recorded in the financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit would increase by $5,442 million and, for the year, expenses would increase and surplus would decrease by $355 million. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The Government records transactions between the General Revenue Fund and the Growth and Financial Security Fund as revenue and expense of the General Revenue Fund. It is the auditor's opinion that, instead of recording an expense, the financial statements should record an asset equal to the amount it owed or paid to these funds. Had this been done, financial assets would increase and accumulated deficit would                decrease by $1,215 million, and, for the year, the net transfer from the Growth and Financial Security Fund and surplus would decrease by $419 million. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | During 2008-09, the Government reclassified agricultural land held for resale as tangible capital assets because this land is not expected to be sold within the next year. The 2007-08 amounts have been restated. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | During 2008-09, the Government made a change in accounting policy resulting in loans to Crown corporations and public debt (gross debt net of sinking funds) now being presented net of government business enterprise specific debt. The 2007-08 amounts have been restated. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

(see accompanying notes) 

35

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----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Operations and Accumulated Deficit 1**

|                                                            |   |   | For the Year Ended March 31 |
|-----------------------------------------------------------------|--------|--------|-----------------------------|
||
||
| **Revenue**                                                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxation                                                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporation capital 2                         |   |   | $                           | 381,289 |   | $ | 524,650 |   | $ | 513,458 |   | $ | 0 |   | $ | 0 |   |
|    Corporation income                            |   |   |                        | 257,679 |   |   | 393,629 |   |   | 554,001 |   |   | 673,641 |   |   | 591,930 |   |
|    Fuel                                          |   |   |                        | 361,039 |   |   | 376,426 |   |   | 383,576 |   |   | 406,434 |   |   | 429,162 |   |
|    Individual income                             |   |   |                        | 1,329,081 |   |   | 1,447,905 |   |   | 1,668,538 |   |   | 1,938,258 |   |   | 1,844,226 |   |
|    Provincial sales 3                            |   |   |                        | 985,079 |   |   | 1,112,350 |   |   | 1,079,794 |   |   | 929,865 |   |   | 1,108,628 |   |
|    Tobacco                                       |   |   |                        | 187,029 |   |   | 171,107 |   |   | 190,334 |   |   | 190,412 |   |   | 199,072 |   |
|    Other 2,3                                     |   |   |                        | 88,019 |   |   | 89,751 |   |   | 94,844 |   |   | 279,633 |   |   | 257,977 |   |
| Total Taxation                                                  |   |   |                        | 3,589,215 |   |   | 4,115,818 |   |   | 4,484,545 |   |   | 4,418,243 |   |   | 4,430,995 |   |
| Non-renewable Resources                                         |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown land sales 4                            |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 419,062 |   |   | 928,245 |   |
|    Natural gas                                   |   |   |                        | 212,440 |   |   | 269,074 |   |   | 165,131 |   |   | 133,780 |   |   | 125,922 |   |
|    Oil 4                                         |   |   |                        | 906,938 |   |   | 1,124,952 |   |   | 1,318,852 |   |   | 1,246,205 |   |   | 1,616,071 |   |
|    Potash                                        |   |   |                        | 305,494 |   |   | 277,967 |   |   | 161,729 |   |   | 432,770 |   |   | 1,364,463 |   |
|    Resource surcharge 2                          |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 315,230 |   |   | 458,299 |   |
|    Other                                         |   |   |                        | 49,319 |   |   | 49,106 |   |   | 48,540 |   |   | 93,299 |   |   | 119,408 |   |
| Total Non-renewable Resources                                   |   |   |                        | 1,474,191 |   |   | 1,721,099 |   |   | 1,694,252 |   |   | 2,640,346 |   |   | 4,612,408 |   |
| Transfers from Government Entities                              |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown Investments Corporation of Saskatchewan |   |   |                        | 268,000 |   |   | 221,000 |   |   | 167,000 |   |   | 200,000 |   |   | 0 |   |
|       - Special dividend          |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 365,000 |   |
|    Liquor and Gaming Authority                   |   |   |                        | 361,044 |   |   | 351,673 |   |   | 370,053 |   |   | 399,531 |   |   | 446,652 |   |
|    Other enterprises and funds                   |   |   |                        | 55,420 |   |   | 41,214 |   |   | 50,043 |   |   | 53,623 |   |   | 39,564 |   |
| Total Transfers from Government Entities                        |   |   |                        | 684,464 |   |   | 613,887 |   |   | 587,096 |   |   | 653,154 |   |   | 851,216 |   |
| Other Own-source Revenue                                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fines, forfeits and penalties                 |   |   |                        | 10,276 |   |   | 9,788 |   |   | 10,173 |   |   | 11,225 |   |   | 11,448 |   |
|    Interest, premium, discount and exchange 5    |   |   |                        | 54,735 |   |   | 89,226 |   |   | 96,062 |   |   | 120,502 |   |   | 187,957 |   |
|    Motor vehicle fees                            |   |   |                        | 121,549 |   |   | 135,183 |   |   | 138,908 |   |   | 140,631 |   |   | 151,143 |   |
|    Other licences and permits                    |   |   |                        | 54,154 |   |   | 41,800 |   |   | 36,787 |   |   | 35,927 |   |   | 36,607 |   |
|    Sales, services and service fees              |   |   |                        | 84,548 |   |   | 89,389 |   |   | 93,332 |   |   | 94,936 |   |   | 101,885 |   |
|    Transfers from other governments              |   |   |                        | 16,668 |   |   | 16,860 |   |   | 17,368 |   |   | 15,107 |   |   | 15,010 |   |
|    Commercial operations                         |   |   |                        | 5,625 |   |   | 64,724 |   |   | 69,575 |   |   | 78,664 |   |   | 86,567 |   |
|    Other                                         |   |   |                        | 30,096 |   |   | 54,413 |   |   | 26,119 |   |   | 54,382 |   |   | 130,872 |   |
| Total Other Own-source Revenue                                  |   |   |                        | 377,651 |   |   | 501,383 |   |   | 488,324 |   |   | 551,374 |   |   | 721,489 |   |
| Total Own-source Revenue                                        |   |   |                        | 6,125,521 |   |   | 6,952,187 |   |   | 7,254,217 |   |   | 8,263,117 |   |   | 10,616,108 |   |
| Transfers from the Federal Government                           |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Canada Health Transfer                        |   |   |                        | 452,396 |   |   | 659,558 |   |   | 716,775 |   |   | 739,648 |   |   | 823,496 |   |
|    Canada Social Transfer                        |   |   |                        | 262,742 |   |   | 298,756 |   |   | 323,599 |   |   | 325,098 |   |   | 338,301 |   |
|    Health Reform Fund                            |   |   |                        | 46,732 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Equalization                                  |   |   |                        | 581,570 |   |   | 88,672 |   |   | 12,723 |   |   | 226,146 |   |   | 0 |   |
|    Other                                         |   |   |                        | 322,859 |   |   | 218,379 |   |   | 335,732 |   |   | 311,669 |   |   | 547,167 |   |
| Total Transfers from the Federal Government                     |   |   |                        | 1,666,299 |   |   | 1,265,365 |   |   | 1,388,829 |   |   | 1,602,561 |   |   | 1,708,964 |   |
| **Total Revenue**                                               |   |   | $                           | 7,791,820 |   | $ | 8,217,552 |   | $ | 8,643,046 |   | $ | 9,865,678 |   | $ | 12,325,072 |   |

(see accompanying notes)

36

----

----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Operations and Accumulated Deficit (continued)**

|                                                                    |   |   | For the Year Ended March 31 |
|-------------------------------------------------------------------------|--------|--------|-----------------------------|
||
||
| **Expense**                                                             |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Executive Branch of Government**                                      |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Advanced Education, Employment and Labour             |   |   | $                           | 0 |   | $ | 0 |   | $ | 689,414 |   | $ | 685,163 |   | $ | 893,291 |   |
|    Agriculture                                           |   |   |                        | 0 |   |   | 422,390 |   |   | 369,995 |   |   | 302,197 |   |   | 424,396 |   |
|    Agriculture, Food and Rural Revitalization            |   |   |                        | 391,566 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Corrections, Public Safety and Policing               |   |   |                        | 119,456 |   |   | 140,205 |   |   | 163,078 |   |   | 305,417 |   |   | 315,083 |   |
|    Crown Investments Corporation of Saskatchewan         |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 240,000 |   |
|    Education                                             |   |   |                        | 1,299,940 |   |   | 1,472,946 |   |   | 978,090 |   |   | 959,951 |   |   | 1,307,461 |   |
|    Energy and Resources                                  |   |   |                        | 75,627 |   |   | 62,395 |   |   | 67,862 |   |   | 56,268 |   |   | 37,946 |   |
|    Enterprise and Innovation                             |   |   |                        | 0 |   |   | 8,142 |   |   | 11,361 |   |   | 54,040 |   |   | 54,618 |   |
|    Enterprise Saskatchewan                               |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 6,087 |   |
|    Environment                                           |   |   |                        | 133,171 |   |   | 146,030 |   |   | 194,151 |   |   | 174,921 |   |   | 177,129 |   |
|    Executive Council                                     |   |   |                        | 7,545 |   |   | 8,569 |   |   | 9,311 |   |   | 12,562 |   |   | 8,293 |   |
|    Finance                                               |   |   |                        | 242,537 |   |   | 247,447 |   |   | 258,964 |   |   | 284,463 |   |   | 290,832 |   |
|    Finance-debt servicing 5                              |   |   |                        | 578,847 |   |   | 544,666 |   |   | 538,303 |   |   | 546,718 |   |   | 520,181 |   |
|    First Nations and Metis Relations                     |   |   |                        | 0 |   |   | 48,314 |   |   | 59,842 |   |   | 70,958 |   |   | 86,526 |   |
|    Government Relations and Aboriginal Affairs 6         |   |   |                        | 193,120 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Government Services                                   |   |   |                        | 0 |   |   | (765 | ) |   | 13,993 |   |   | 8,654 |   |   | 12,738 |   |
|    Government Services - commercial operations           |   |   |                        | 0 |   |   | 58,384 |   |   | 63,248 |   |   | 70,312 |   |   | 81,180 |   |
|    Health                                                |   |   |                        | 2,773,961 |   |   | 2,990,625 |   |   | 3,202,965 |   |   | 3,504,333 |   |   | 3,976,241 |   |
|    Highways and Infrastructure                           |   |   |                        | 255,249 |   |   | 263,938 |   |   | 307,310 |   |   | 353,684 |   |   | 482,400 |   |
|    Highways and Infrastructure - commercial operations   |   |   |                        | 5,583 |   |   | 5,715 |   |   | 4,198 |   |   | 6,542 |   |   | 2,892 |   |
|    Information Technology Office                         |   |   |                        | 4,144 |   |   | 4,853 |   |   | 6,812 |   |   | 5,362 |   |   | 5,384 |   |
|    Information Technology Office - commercial operations |   |   |                        | 0 |   |   | 0 |   |   | 89 |   |   | 27 |   |   | 1,630 |   |
|    Intergovernmental Affairs                             |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 2,757 |   |   | 3,519 |   |
|    Justice and Attorney General                          |   |   |                        | 202,314 |   |   | 217,415 |   |   | 237,622 |   |   | 129,189 |   |   | 135,648 |   |
|    Labour                                                |   |   |                        | 14,172 |   |   | 14,751 |   |   | 15,369 |   |   | 0 |   |   | 0 |   |
|    Municipal Affairs                                     |   |   |                        | 0 |   |   | 198,236 |   |   | 207,534 |   |   | 214,871 |   |   | 397,388 |   |
|    Northern Affairs                                      |   |   |                        | 4,902 |   |   | 5,184 |   |   | 5,351 |   |   | 0 |   |   | 0 |   |
|    Office of the Provincial Secretary                    |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 2,750 |   |   | 4,401 |   |
|    Public Service Commission                             |   |   |                        | 8,263 |   |   | 8,908 |   |   | 15,868 |   |   | 39,234 |   |   | 35,182 |   |
|    Saskatchewan Property Management Corporation          |   |   |                        | 24,278 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Saskatchewan Research Council                         |   |   |                        | 7,779 |   |   | 12,390 |   |   | 8,446 |   |   | 8,992 |   |   | 12,082 |   |
|    SaskEnergy Incorporated                               |   |   |                        | 0 |   |   | 74,700 |   |   | 7,000 |   |   | 0 |   |   | 0 |   |
|    Social Services                                       |   |   |                        | 603,048 |   |   | 630,819 |   |   | 711,193 |   |   | 615,032 |   |   | 676,604 |   |
|    Tourism, Parks, Culture and Sport                     |   |   |                        | 52,958 |   |   | 62,662 |   |   | 67,004 |   |   | 125,309 |   |   | 130,726 |   |
| **Legislative Branch of Government**                                    |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Chief Electoral Officer                               |   |   |                        | 794 |   |   | 809 |   |   | 1,281 |   |   | 10,852 |   |   | 1,166 |   |
|    Children's Advocate                                   |   |   |                        | 0 |   |   | 1,195 |   |   | 1,298 |   |   | 1,624 |   |   | 1,529 |   |
|    Conflict of Interest Commissioner                     |   |   |                        | 107 |   |   | 114 |   |   | 128 |   |   | 136 |   |   | 145 |   |
|    Information and Privacy Commissioner                  |   |   |                        | 373 |   |   | 487 |   |   | 599 |   |   | 675 |   |   | 812 |   |
|    Legislative Assembly                                  |   |   |                        | 18,462 |   |   | 18,987 |   |   | 19,740 |   |   | 21,389 |   |   | 22,429 |   |
|    Ombudsman                                             |   |   |                        | 0 |   |   | 1,643 |   |   | 1,779 |   |   | 1,911 |   |   | 2,085 |   |
|    Ombudsman and Children's Advocate                     |   |   |                        | 2,752 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Provincial Auditor                                    |   |   |                        | 5,755 |   |   | 5,932 |   |   | 6,054 |   |   | 6,516 |   |   | 7,115 |   |
| **Total Expense**                                                       |   |   |                        | 7,026,703 |   |   | 7,678,086 |   |   | 8,245,252 |   |   | 8,582,809 |   |   | 10,355,139 |   |

37

----

----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Operations and Accumulated Deficit (concluded)**

|                                                                                                                                                                                                                                                                            |   |   | For the Year Ended March 31 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------|
||
||
| Pre-transfer Surplus                                                                                                                                                                                                                                                            |   |   |                        | 765,117 |   |   | 539,466 |   |   | 397,794 |   |   | 1,282,869 |   |   | 1,969,933 |   |
| Transfer to the Growth and Financial Security Fund                                                                                                                                                                                                                              |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | (984,967 | ) |
| Transfer from the Growth and Financial Security Fund                                                                                                                                                                                                                            |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 1,403,897 |   |
| Transfer to the Fiscal Stabilization Fund                                                                                                                                                                                                                                       |   |   |                        | (382,500 | ) |   | (139,000 | ) |   | 0 |   |   | (641,434 | ) |   | 0 |   |
| Transfer to the Saskatchewan Infrastructure Fund                                                                                                                                                                                                                                |   |   |                        | 0 |   |   | 0 |   |   | (105,090 | ) |   | 0 |   |   | 0 |   |
| **Surplus**                                                                                                                                                                                                                                                                     |   |   | $                           | 382,617 |   | $ | 400,466 |   | $ | 292,704 |   | $ | 641,435 |   | $ | 2,388,863 |   |
| Accumulated Deficit, Beginning of Year                                                                                                                                                                                                                                          |   |   |                        | (7,054,005 | ) |   | (5,047,210 | ) |   | (4,322,801 | ) |   | (4,001,226 | ) |   | (3,359,791 | ) |
| Adjustment to accumuated deficit                                                                                                                                                                                                                                                |   |   |                        | 1,624,178 |   |   | 323,943 |   |   | 28,871 |   |   | 0 |   |   | 0 |   |
| **Accumulated Deficit, End of Year**                                                                                                                                                                                                                                            |   |   | $                           | (5,047,210 | ) | $ | (4,322,801 | ) | $ | (4,001,226 | ) | $ | (3,359,791 | ) | $ | (970,928 | ) |
| 1  See Notes 1-9 commencing on page 34.                                                                                                                                                                                                                               |
| 2  For 2009, corporation capital tax has been split into two components. Resource surcharge has been moved to non-renewable resources and the remaining component of corporation capital tax has been included with other taxes. The 2008 amounts have been restated. |
| 3  For 2009, liquor consumption tax has been moved from sales tax to other taxes and sales tax has been renamed provincial sales tax. The 2008 amounts have been restated.                                                                                            |
| 4  For 2009, crown land sales previously reported in oil revenues have been broken out. The 2008 amounts have been restated.                                                                                                                                          |
| 5  During 2008-09, the Government made a change in accounting policy resulting in reimbursements of interest from Crown corporation general debt no longer being netted against debt servicing costs. The 2007-08 amounts have been restated.                         |
| 6  For 2005, Government Relations and Aboriginal Affairs reflects expenses for the Department of Government Relations and the Department of First Nations and Metis Relations.                                                                                        |

(see accompanying notes) 

38

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----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Change in Net Debt 1**

|                                                                                                                                                                                                                             |   |   | For the Year Ended March 31 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------|
||
||
| **Surplus**                                                                                                                                                                                                                      |   |   | $                           | 382,617 |   | $ | 400,466 |   | $ | 292,704 |   | $ | 641,435 |   | $ | 2,388,863 |   |
| **Tangible Capital Assets**                                                                                                                                                                                                      |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Acquisitions 2                                                                                                                                                                                                 |   |   |                        | (149,751 | ) |   | (221,278 | ) |   | (249,510 | ) |   | (284,657 | ) |   | (349,349 | ) |
|    Amortization                                                                                                                                                                                                   |   |   |                        | 103,411 |   |   | 134,530 |   |   | 141,657 |   |   | 146,621 |   |   | 151,521 |   |
|    Net (gain) loss on disposal 2                                                                                                                                                                                  |   |   |                        | 143 |   |   | (391 | ) |   | 12,722 |   |   | 931 |   |   | 5,153 |   |
|    Proceeds on disposal 2                                                                                                                                                                                         |   |   |                        | 133 |   |   | 3,243 |   |   | 1,569 |   |   | 6,765 |   |   | 7,082 |   |
|    Write downs                                                                                                                                                                                                    |   |   |                        | 0 |   |   | 2,927 |   |   | 82 |   |   | 1,499 |   |   | 11,026 |   |
| **Net Acquisition of Tangible Capital Assets**                                                                                                                                                                                   |   |   |                        | (46,064 | ) |   | (80,969 | ) |   | (93,480 | ) |   | (128,841 | ) |   | (174,567 | ) |
| **Other Non-financial Assets**                                                                                                                                                                                                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net (acquisition) use of prepaid expenses                                                                                                                                                                      |   |   |                        | 108 |   |   | 337 |   |   | (197 | ) |   | (386 | ) |   | (217 | ) |
|    Net acquisition of inventories held for consumption                                                                                                                                                            |   |   |                        | (2,964 | ) |   | (5,862 | ) |   | (7,842 | ) |   | (10,643 | ) |   | (12,076 | ) |
| **Net Acquisition of Other Non-financial Assets**                                                                                                                                                                                |   |   |                        | (2,856 | ) |   | (5,525 | ) |   | (8,039 | ) |   | (11,029 | ) |   | (12,293 | ) |
| **Decrease in net debt**                                                                                                                                                                                                         |   |   |                        | 333,697 |   |   | 313,972 |   |   | 191,185 |   |   | 501,565 |   |   | 2,202,003 |   |
| Net Debt, beginning of year                                                                                                                                                                                                      |   |   |                        | (7,054,005 | ) |   | (6,880,388 | ) |   | (6,635,946 | ) |   | (6,445,669 | ) |   | (6,048,714 | ) |
| Adjustment to net debt 2                                                                                                                                                                                                         |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | (103,447 | ) |   | 0 |   |
| Transfers from government organizations                                                                                                                                                                                          |   |   |                        | (157,859 | ) |   | (69,530 | ) |   | (908 | ) |   | (1,163 | ) |   | (1,341 | ) |
| Reclassification of prepaid expenses to non-financial assets                                                                                                                                                                     |   |   |                        | (2,221 | ) |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
| **Net Debt, End of Year**                                                                                                                                                                                                        |   |   | $                           | (6,880,388 | ) | $ | (6,635,946 | ) | $ | (6,445,669 | ) | $ | (6,048,714 | ) | $ | (3,848,052 | ) |
| 1  See Notes 1-9 commencing on page 34.                                                                                                                                                                                |
| 2  During 2008-09, the Government reclassified agricultural land held for resale as tangible capital assets because this land is not expected to be sold within the next year. The 2007-08 amounts have been restated. |

(see accompanying notes) 

39

----

----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Investing Activities 1**

|                                                                |   |   | For the Year Ended March 31 |
|---------------------------------------------------------------------|--------|--------|-----------------------------|
||
||
| **Receipts**                                                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loans**                                                           |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Agricultural Credit Corporation of Saskatchewan   |   |   | $                           | 9,100 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   |
|    Information Services Corporation of Saskatchewan  |   |   |                        | 13,880 |   |   | 10,500 |   |   | 30,000 |   |   | 11,000 |   |   | 3,919 |   |
|    Investment Saskatchewan Inc.                      |   |   |                        | 0 |   |   | 0 |   |   | 10,000 |   |   | 7,000 |   |   | 0 |   |
|    Municipal Financing Corporation of Saskatchewan 2 |   |   |                        | 9,391 |   |   | 3,847 |   |   | 0 |   |   | 4,946 |   |   | 0 |   |
|    Saskatchewan Crop Insurance Corporation           |   |   |                        | 0 |   |   | 68,579 |   |   | 37,200 |   |   | 15,800 |   |   | 50,000 |   |
|    Saskatchewan Housing Corporation                  |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 31,000 |   |
|    Saskatchewan Opportunities Corporation            |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 17,985 |   |
|    Saskatchewan Power Corporation 2                  |   |   |                        | 149,929 |   |   | 86,312 |   |   | 31,809 |   |   | 0 |   |   | 125,000 |   |
|    Saskatchewan Property Management Corporation      |   |   |                        | 5,500 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Saskatchewan Telecommunications                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Holding Corporation 2           |   |   |                        | 14,497 |   |   | 0 |   |   | 32,598 |   |   | 0 |   |   | 0 |   |
|    Saskatchewan Water Corporation                    |   |   |                        | 764 |   |   | 34,012 |   |   | 876 |   |   | 1,496 |   |   | 2,491 |   |
|    SaskEnergy Incorporated 2                         |   |   |                        | 37,958 |   |   | 101,195 |   |   | 32,681 |   |   | 0 |   |   | 48,000 |   |
|    Other                                             |   |   |                        | 60,810 |   |   | 60,224 |   |   | 60,855 |   |   | 55,883 |   |   | 54,440 |   |
| **Total Loan Receipts**                                             |   |   |                        | 301,829 |   |   | 364,669 |   |   | 236,019 |   |   | 96,125 |   |   | 332,835 |   |
| **Sinking Funds**                                                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Contributions 2                                   |   |   |                        | 25,729 |   |   | 69,045 |   |   | 32,411 |   |   | 28,522 |   |   | 20,261 |   |
|    Redemptions 2                                     |   |   |                        | 120,577 |   |   | 30,912 |   |   | 0 |   |   | 0 |   |   | 81,635 |   |
| **Total Sinking Fund Receipts**                                     |   |   |                        | 146,306 |   |   | 99,957 |   |   | 32,411 |   |   | 28,522 |   |   | 101,896 |   |
| **Other Investing Activities**                                      |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Equity investment in Crown Investments            |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Corporation of Saskatchewan     |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 130,000 |   |
|    Other 3                                           |   |   |                        | 1,443 |   |   | 905 |   |   | 1,509 |   |   | 0 |   |   | 0 |   |
| **Total Other Investing Activities**                                |   |   |                        | 1,443 |   |   | 905 |   |   | 1,509 |   |   | 0 |   |   | 130,000 |   |
| **Total Receipts**                                                  |   |   | $                           | 449,578 |   | $ | 465,531 |   | $ | 269,939 |   | $ | 124,647 |   | $ | 564,731 |   |

(see accompanying notes) 

40

----

----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Investing Activities (concluded)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | For the Year Ended March 31 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------|
||
||
| **Disbursements**                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loans**                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Information Services Corporation of Saskatchewan                                                                                                                                                                                                                                                                                                                                                                          | $      | 0      |                        | $ | 0 |   | $ | 18,047 |   | $ | 0 |   | $ | 0 |   |
|    Municipal Financing Corporation of Saskatchewan 2                                                                                                                                                                                                                                                                                                                                                                         |   | 7,148  |                        |   | 5,000 |   |   | 8,975 |   |   | 0 |   |   | 1,062 |   |
|    Saskatchewan Crop Insurance Corporation                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                        | 44,579 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|    Saskatchewan Opportunities Corporation                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                        | 0 |   |   | 3,000 |   |   | 15,000 |   |   | 13,844 |   |   | 23,684 |   |
|    Saskatchewan Power Corporation 2                                                                                                                                                                                                                                                                                                                                                                                          |   |   |                        | 350,000 |   |   | 250,000 |   |   | 100,000 |   |   | 165,000 |   |   | 100,000 |   |
|    Saskatchewan Telecommunications                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Holding Corporation 2                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 28,900 |   |
|    Saskatchewan Water Corporation                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                        | 3,521 |   |   | 7,067 |   |   | 2,455 |   |   | 7,600 |   |   | 5,000 |   |
|    SaskEnergy Incorporated 2                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                        | 50,000 |   |   | 102,500 |   |   | 1,100 |   |   | 60,500 |   |   | 170,000 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |                        | 70,412 |   |   | 64,738 |   |   | 58,567 |   |   | 63,954 |   |   | 48,158 |   |
| **Total Loan Disbursements**                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |                        | 525,660 |   |   | 432,305 |   |   | 204,144 |   |   | 310,898 |   |   | 376,804 |   |
| **Sinking Funds**                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributions 2                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |                        | 91,273 |   |   | 135,070 |   |   | 95,132 |   |   | 96,415 |   |   | 1,913,015 |   |
| Redemptions 2                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 32,793 |   |
| **Total Sinking Fund Disbursements**                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |                        | 91,273 |   |   | 135,070 |   |   | 95,132 |   |   | 96,415 |   |   | 1,945,808 |   |
| **Other Investing Activities 3**                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                        | 63 |   |   | 13 |   |   | 20 |   |   | 0 |   |   | 0 |   |
| **Total Disbursements**                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | $                           | 616,996 |   | $ | 567,388 |   | $ | 299,296 |   | $ | 407,313 |   | $ | 2,322,612 |   |
| **Net Disbursements**                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | $                           | (167,418 | ) | $ | (101,857 | ) | $ | (29,357 | ) | $ | (282,666 | ) | $ | (1,757,881 | ) |
| 1  See Notes 1-9 commencing on page 34.                                                                                                                                                                                                                                                                                                                                                                                           |
| 2  During 2008-09, the Government made a change in accounting policy resulting in loans to Crown corporations and public debt (gross debt net of sinking funds) now being presented net of government business enterprise specific debt and related sinking funds. Also, receipts on redemptions of sinking funds for Crown corporation general debt are no longer netted. The 2007-08 amounts have been                restated. |
| 3  During 2008-09, the Government reclassified agricultural land held for resale as tangible capital assets because this land is not expected to be sold within the next year. The 2007-08 amounts have been restated.                                                                                                                                                                                                            |

(see accompanying notes) 

41

----

----

**Government of the Province of Saskatchewan        General Revenue Fund Statement of Cash Flow 1**

|                                                                                                                                                                                                                                                                                       |   |    | For the Year Ended March 31 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------------------------|
||
||
| **Operating Activities**                                                                                                                                                                                                                                                                   |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surplus                                                                                                                                                                                                                                                                                    |   |    | $                           | 382,617 |   | $ | 400,466 |   | $ | 292,704 |   | $ | 641,435 |   | $ | 2,388,863 |   |
| Non-cash items included in surplus                                                                                                                                                                                                                                                         |   |    |                        | 58,538 |   |   | 75,973 |   |   | 111,308 |   |   | 111,831 |   |   | 94,061 |   |
| Net change in non-cash operating activities                                                                                                                                                                                                                                                |   |    |                        | 231,425 |   |   | 6,067 |   |   | (17,237 | ) |   | 228,384 |   |   | (114,537 | ) |
| Adjustment to accumulated deficit                                                                                                                                                                                                                                                          |   |    |                        | 0 |   |   | 10,513 |   |   | 0 |   |   | 0 |   |   | 0 |   |
| **Cash Provided by Operating Activities**                                                                                                                                                                                                                                                  |   |    |                        | 672,580 |   |   | 493,019 |   |   | 386,775 |   |   | 981,650 |   |   | 2,368,387 |   |
| **Capital Activities**                                                                                                                                                                                                                                                                     |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition of tangible capital assets 2                                                                                                                                                                                                                                                   |   |    |                        | (149,751 | ) |   | (221,278 | ) |   | (249,510 | ) |   | (284,657 | ) |   | (349,349 | ) |
| Proceeds on disposal of tangible capital assets 2                                                                                                                                                                                                                                          |   | 133     |                        |   | 3,243 |   |   | 1,569 |   |   | 6,765 |   |   | 7,082 |   |
| **Cash Used for Capital Activities**                                                                                                                                                                                                                                                       |   |    |                        | (149,618 | ) |   | (218,035 | ) |   | (247,941 | ) |   | (277,892 | ) |   | (342,267 | ) |
| **Investing Activities**                                                                                                                                                                                                                                                                   |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Advances 3                                                                                                                                                                                                                                                                            |   |    |                        | (525,660 | ) |   | (432,305 | ) |   | (204,144 | ) |   | (310,898 | ) |   | (376,804 | ) |
| Loan Repayments 3                                                                                                                                                                                                                                                                          |   |    |                        | 301,829 |   |   | 364,669 |   |   | 236,019 |   |   | 96,125 |   |   | 332,835 |   |
| Sinking fund contributions for general debt 3                                                                                                                                                                                                                                              |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | (96,415 | ) |   | (1,913,015 | ) |
| Sinking fund contributions for                                                                                                                                                                                                                                                             |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown corporation general debt 3                                                                                                                                                                                                                                         |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | 28,522 |   |   | 20,261 |   |
| Sinking fund redemptions for general debt 3                                                                                                                                                                                                                                                |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 81,635 |   |
| Sinking fund redemptions for                                                                                                                                                                                                                                                               |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Crown corporation general debt 3                                                                                                                                                                                                                                         |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | (32,793 | ) |
| Sinking fund contributions received                                                                                                                                                                                                                                                        |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    from Crown corporations 3                                                                                                                                                                                                                                                |   |    |                        | 25,729 |   |   | 69,045 |   |   | 32,411 |   |   | 0 |   |   | 0 |   |
| Contributions made to sinking funds 3                                                                                                                                                                                                                                                      |   |    |                        | (91,273 | ) |   | (135,070 | ) |   | (95,132 | ) |   | 0 |   |   | 0 |   |
| Government debt redemption funded from sinking funds 3                                                                                                                                                                                                                                     |   | 120,577 |                        |   | 30,912 |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Equity investment in Crown Investments                                                                                                                                                                                                                                                     |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporation of Saskatchewan                                                                                                                                                                                                                                              |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 130,000 |   |
| Other 2                                                                                                                                                                                                                                                                                    |   |    |                        | 1,380 |   |   | 892 |   |   | 1,489 |   |   | 0 |   |   | 0 |   |
| **Cash Used for Investing Activities**                                                                                                                                                                                                                                                     |   |    |                        | (167,418 | ) |   | (101,857 | ) |   | (29,357 | ) |   | (282,666 | ) |   | (1,757,881 | ) |
| **Financing Activities**                                                                                                                                                                                                                                                                   |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from general debt 3                                                                                                                                                                                                                                                               |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | 558,138 |   |   | 32,005 |   |
| Repayment of general debt 3                                                                                                                                                                                                                                                                |   |    |                        | 0 |   |   | 0 |   |   | 0 |   |   | (646,719 | ) |   | (754,791 | ) |
| Proceeds from debt 3                                                                                                                                                                                                                                                                       |   |    |                        | 986,501 |   |   | 829,511 |   |   | 1,421,164 |   |   | 0 |   |   | 0 |   |
| Repayment of debt 3                                                                                                                                                                                                                                                                        |   |    |                        | (1,394,950 | ) |   | (1,014,404 | ) |   | (1,293,271 | ) |   | 0 |   |   | 0 |   |
| Increase (Decrease) in deposits held                                                                                                                                                                                                                                                       |   |    |                        | 410,817 |   |   | 179,385 |   |   | (850,107 | ) |   | 74,495 |   |   | 208,967 |   |
| **Cash Provided by (Used for) Financing Activities**                                                                                                                                                                                                                                       |   |    |                        | 2,368 |   |   | (5,508 | ) |   | (722,214 | ) |   | (14,086 | ) |   | (513,819 | ) |
| **Increase (Decrease) in Cash and**                                                                                                                                                                                                                                                        |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **Temporary investments**                                                                                                                                                                                                                                                |   |    |                        | 357,912 |   |   | 167,619 |   |   | (612,737 | ) |   | 407,006 |   |   | (245,580 | ) |
| Cash and temporary investments                                                                                                                                                                                                                                                             |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    beginning of year                                                                                                                                                                                                                                                        |   |    |                        | 501,675 |   |   | 859,587 |   |   | 1,027,206 |   |   | 414,469 |   |   | 821,475 |   |
| **Cash and Temporary Investments,**                                                                                                                                                                                                                                                        |   |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    **End of Year**                                                                                                                                                                                                                                                          |   |    | $                           | 859,587 |   | $ | 1,027,206 |   | $ | 414,469 |   | $ | 821,475 |   | $ | 575,895 |   |
| 1  See Notes 1-9 commencing on page 34.                                                                                                                                                                                                                                          |
| 2  During 2008-09, the Government reclassified agricultural land held for resale as tangible capital assets because this land is not expected to be sold within the next year. The 2007-08 amounts have been restated.                                                           |
| 3  During 2008-09, the Government made a change in accounting policy resulting in loans to Crown corporations and public debt (gross debt net of sinking funds) now being presented net of government business enterprise specific debt. The 2007-08 amounts have been restated. |

(see accompanying notes) 

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**Government of the Province of Saskatchewan        General Revenue Fund Notes to the Financial Statements**        As at March 31, 2009 

| **1.** | **Significant Accounting Policies** |
|--------|-------------------------------------|

| ***(a)*** | ***Basis of accounting*** |
|-----------|---------------------------|

           These financial statements are prepared in accordance with generally accepted accounting principles for the public sector, as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants, with the following exceptions: 

| • | transfers to and from the Growth and Financial Security Fund (2008 - transfers to and from the Fiscal Stabilization Fund) are included in the determination of surplus for the year; and, |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | pension liabilities are not recorded in the financial statements. The General Revenue Fund accounts for defined benefit pension obligations on a cash basis. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***(b)*** | ***Reporting entity*** |
|-----------|------------------------|

        The General Revenue Fund is the general fund which receives all revenues unless otherwise specified by law. Spending from the General Revenue Fund is appropriated by the Legislative Assembly. 

        Other government entities such as special purpose funds, government business enterprises, and other Crown corporations and agencies report separately in other financial statements. Only financial transactions to or from these other entities are included in the General Revenue Fund. The net expenses/recoveries for revolving funds' operations are charged to expense. 

        Government business enterprises are self-sufficient government organizations that have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entry as their principal activity. 

        The Government's Summary financial statements which include the financial activities of the General Revenue Fund and other government entities are provided separately. 

| ***(c)*** | ***Specific accounting policies*** |
|-----------|------------------------------------|

**Financial assets**

        Financial assets are assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. 

        *Temporary investments* are recorded at the lower of cost or market. 

        *Deferred charges* include issue costs and net discounts or premiums incurred on the issue of general debt and related derivative instruments. They are recorded at cost and amortized on a straight-line basis over the remaining life of the debt issue. 

        *Loans to Crown corporations* and *Other loans* generally have fixed repayment terms and are interest bearing. Promissory notes issued by Crown corporations are recorded at par; all other loans are recorded at cost. Loans to Crown corporations are presented net of amounts Crown corporations have contributed to sinking funds and net of government business enterprise specific        debt. 

        *Equity investment in Crown Investments Corporation of Saskatchewan* is an advance to the corporation to form its equity capitalization and is recorded at cost. 

        Where there has been a loss in value that is other than a temporary decline, loans and equity investments are written down to recognize the loss. 

**Liabilities**

        Liabilities are present obligations to individuals and organizations outside of the General Revenue Fund arising from transactions and events occurring prior to year end, which will be satisfied in the future through the transfer or use of assets or another form of economic settlement. They consist of obligations to provide authorized transfers where any eligibility criteria have been        met, to repay borrowings, to pay for goods and services acquired prior to year end, and to deliver goods or services in the future, where payment has been received. 

43

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        *Unearned revenue* consists mainly of revenue for Crown mineral leases and motor vehicle fees that will be earned in a subsequent fiscal year. 

        *Public debt* is recorded at par and is comprised of: 

| • | *Government general debt* which is debt issued by the General Revenue Fund to fund government spending; |
|--------|---------------------------------------------------------------------------------------------------------|

| • | *Crown corporation general debt* which is debt issued by the General Revenue Fund and subsequently loaned to a Crown corporation; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| • | *Government business enterprise specific debt* which is debt issued by the General Revenue Fund specifically on behalf of government business enterprises where the government expects to realize the receivables from the government business enterprises and settle the external debt simultaneously. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

        On the Statement of Financial Position, public debt is presented net of government business enterprise specific debt. Debt servicing costs on the Statement of Operations are presented net of reimbursements of interest for government business enterprise specific debt. 

        Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund balances where applicable. The General Revenue Fund is reimbursed by Crown corporations for all sinking fund contributions made on debt incurred on their behalf. Premiums and discounts on long term investments within these sinking funds are amortized on a        constant yield basis. 

        Debt issues and sinking fund investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31. 

        Premiums, discounts, and issue costs incurred on general debt are recorded as deferred charges. Discounts, premiums and commissions on government business enterprise specific debt are netted against reimbursements by these entities. 

        *Unamortized foreign exchange gain or loss* includes unrealized foreign exchange gains and losses resulting from conversion of general debt and sinking fund investments held in a foreign currency to the Canadian dollar equivalent at March 31. Unrealized foreign exchange gains and losses are amortized on a straight-line basis over the remaining life of the debt issue. Realized        foreign exchange gains or losses resulting from general debt transactions are included in debt servicing costs. 

        *Guaranteed debt* includes guarantees by the Minister of Finance made through specific agreements or legislation to pay all or part of the principal and/or interest on a debt obligation in the event of default by the borrower. Loss provisions on guaranteed debt are recorded as a liability and an expense when it is likely that a loss will occur. The amount of the loss provision        represents the best estimate of future payments net of recoveries. 

**Non-financial assets**

        Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities, but instead are normally employed to deliver government services, may be consumed in the normal course of operations and are not for sale in the normal course of operations. 

        *Inventories held for consumption* are recorded at cost and are expensed as they are consumed. 

        *Tangible capital assets* are recorded at cost which includes all amounts directly attributable to the acquisition, construction, development or betterment of the asset but does not include interest. Tangible capital assets are generally amortized on a straight-line basis over the estimated useful life of each asset. 

**Revenue**

        Revenues are recorded on the accrual basis. For corporate and individual income taxes, cash received from the federal government is used as the basis for estimating the tax revenue. Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are met. 

**Expense**

        Expenses are recorded on the accrual basis, except for defined benefit pension plan costs which are recorded on the cash basis. Government transfers are recognized as expenses in the period during which the transfer is authorized and any eligibility criteria are met. 

44

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| ***(d)*** | ***Measurement uncertainty*** |
|-----------|-------------------------------|

        Measurement uncertainty is uncertainty in the determination of the amount at which an item is recognized or disclosed in financial statements. Such uncertainty exists when there is a variance between the recognized or disclosed amount and another reasonably possible amount. 

        Measurement uncertainty that may be material to these financial statements exists: 

| • | in corporate and individual income tax revenue totalling $2,436.2 million (2008 - $2,611.9 million) because final tax assessments may differ from initial estimates on which cash payments are based; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in oil and natural gas non-renewable resource revenue totalling $1,742.0 million (2008 - $1,380.0 million) because of price and production sensitivities in the royalty revenue structures; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in potash non-renewable resource revenue totalling $1,364.5 million (2008 - $432.8 million) because actual operating profits may differ from initial estimates; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in the Canada Health Transfer and Canada Social Transfer revenue totalling $1,161.8 million (2008 - $1,064.7 million) because of changes in the economic and demographic conditions in the Province and the country; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in the disclosure of liabilities for defined benefit pension plans of $5,442.3 million (2008 - $5,087.8 million) because actual experience may differ from actuarial estimations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

        While best estimates are used to report items, it is reasonably possible that changes in future conditions, occurring within one fiscal year, could require a material change in the amounts recognized or disclosed. 

| **2.** | **Temporary Investments** |
|--------|---------------------------|

        The temporary investments are recorded at $895.7 million (2008 — $666.4 million), consist of investment grade money market securities and are generally for less than 30 days. Due to the short-term nature, market value approximates cost. 

| **3.** | **Risk Management of Public Debt** |
|--------|------------------------------------|

        Funds are borrowed in both domestic and foreign capital markets by issuing Province of Saskatchewan securities. This borrowing activity finances Government operations and the activities of Crown corporations. These transactions result in exposure to four types of risk: interest rate risk, foreign exchange rate risk, credit risk and liquidity risk. 

        To manage these risks, a preference for fixed rate Canadian dollar denominated debt is maintained. Where market conditions dictate that other forms of debt are more attractive, opportunities are identified to use derivative financial instruments to reduce these risks. A derivative financial instrument is a contract, the value of which is based on the value of another asset or index.        

        *Interest rate risk* is the risk that debt servicing costs will increase due to changes in interest rates. This risk is managed by issuing debt securities at predominately fixed rates of interest rather than at floating rates of interest. 

        Floating rate debt is defined as the sum of floating rate debentures, short-term promissory notes, fixed rate debt maturing within one year and Saskatchewan Savings Bonds. Opportunities are sought to effectively convert floating rate debt into fixed rate debt through the use of interest rate swaps. There are interest rate swaps on a notional value of debt of $66.0 million (2008        — $66.0 million). At March 31, 2009, 88.0 per cent (2008 – 88.8 per cent) of the gross debt effectively carried a rate of interest that was fixed for greater than a one year period. 

        Gross debt includes floating rate debt of $1,330.4 million (2008 — $1,297.0 million). A one percentage point increase in interest rates would decrease the surplus by $12.9 million in 2009-10. 

        *Foreign exchange rate risk* is the risk that debt servicing costs will increase due to a decline in the value of the Canadian dollar relative to other currencies. This risk is managed by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, opportunities are sought to effectively convert it into        Canadian dollar debt through the use of a cross currency swap. At March 31, 2009, 96.9 per cent (2008 – 97.6 per cent) of the gross debt is effectively denominated in Canadian dollars. 

The following foreign-denominated items have been hedged to Canadian dollars using cross currency swaps: 

| • | debentures totalling 1,225.0 million U.S. dollars (2008 - 1,225.0 million) fully hedged to $1,619.3 million Canadian (2008 - $1,619.3 million); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| • | debentures totalling 300.0 million Swiss francs (2008 - 300.0 million) fully hedged to $274.7 million Canadian (2008 - $274.7 million); and, |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| • | interest payments on debentures of 275.0 million U.S. dollars (2008 - 275.0 million) hedged to Canadian dollars at an exchange rate of 1.2325 (2008 - 1.2325). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

        In total, there are cross currency swaps on a notional value of debt of $2,507.5 million (2008 — $2,507.5 million). The effectiveness of these hedges is assessed on an ongoing basis by monitoring the credit ratings of the counterparties to the hedges. 

45

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        *Credit risk* is the risk that a loss may occur from the failure of another party to meet its obligations under a derivative financial instrument contract. This risk is managed by dealing only with counterparties that have good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31, 2009, 100        per cent (2008 – 100 per cent) of counterparties held a Standard and Poor’s credit rating of A or higher. 

        *Liquidity risk* is a risk that financial commitments will not be met over the short-term. This risk is managed by distributing debt maturities over many years, maintaining sinking funds on long-term debt issues and maintaining adequate cash reserves and short-term borrowing programs as contingent sources of liquidity. 

| **4.** | **Retirement Benefits** |
|--------|-------------------------|

        The Government sponsors several defined benefit pension plans and a defined contribution pension plan. 

        Pension fund assets of government sponsored defined benefit and defined contribution pension plans are invested in fixed income securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans. 

**Defined benefit plans**

        Defined benefit plans provide benefits based on length of service and pensionable earnings. A typical defined benefit plan provides pensions equal to 2.0 per cent of a member’s average five years highest salary, multiplied by the years of service to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their plan. Pensions and        contribution rates are integrated with the Canada Pension Plan. 

        The two main plans are the Teachers’ Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan (STC), Anti-TB League Employees Superannuation Plan (ATB) and the Saskatchewan Pension Annuity Fund, an annuity        underwriting operation. Obligations for allowances payable to members of the former Members of the Legislative Assembly Superannuation Fund (MLA) are part of the General Revenue Fund. 

        Actuarial valuations are performed at least triennially. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term        rates and short-term forecasts. Estimates vary based on the individual plan. 

        The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued at market related values based on actual market values averaged over a four year period. In the periods between valuations, the actuary estimates the market related value of pension fund assets using expected long term rates of return for the individual        plans. 

        The Government is required to match member current service contributions for all plans except the PSSP and Judges. Separate pension funds are maintained for all plans except the PSSP and the MLA. The PSSP member contributions are deposited into the General Revenue Fund. All pension obligations arising under the PSSP and the MLA are paid from the General Revenue Fund. 

46

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        Information on the defined benefit plans is as follows: 

|   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
||